- EUR/USD breaks higher on the back of a weaker US dollar.
- DXY near weekly lows after a surprise slide in August PPI and positive risk sentiment.
The EUR/USD pair started to move to the upside following the release of the US Producer Price Index for August and accelerated above 1.1600. Recently printed a fresh daily high at 1.1620. As of writing, is holding near the highs with the positive tone intact.
The greenback lost strength on the back of the 0.1% slide in August PPI against an expected increase of 0.2%. The DXY dropped from 95.20 to 94.89 and US yields move lower. Emerging market currencies are also higher versus the US dollar. On Thursday, CPI data is due in the US while later today, the Federal Reserve will release the Beige Book.
EUR/USD moved in a range between 1.1600 and 1.1570 for hours before breaking to the upside. So far it is holding on top of 1.1600 supported by a weaker US dollar. It heads for the third daily gain in a row, a close above 1.1630 would be the highest since August 30.
EUR/USD Technical levels
The pair is testing a short-term trendline that stands around 1.1620. A consolidation on top could lead to further gains and to a test last week highs at 1.1655/60, above the next resistance might be seen at 1.1695/1.1700. On the flip side, support level snow could be seen at 1.1605 (European session high), 1.15765/70 (Sep 12 low) and 1.1525 (Sep 10 low).
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