- EUR/USD turns north once again, with eyes on the 100-DMA barrier.
- US dollar meets fresh supply amid improving market mood.
- The daily technical setup appears in favor of the EUR bulls.
EUR/USD is back on the bid above 1.2000, snapping three straight days of sluggishness. The US dollar has resumed its downtrend, helping the spot to make another attempt towards 1.2050. Eurozone/US PMIs will offer fresh cues later this Friday.
The greenback is losing ground once again, as the risk sentiment improves, with investors moving past the Bloomberg report, which cited that US President Joe Biden is considering hiking the capital gains to pay for his social plan.
The US tax hike chatters triggered a fresh sell-off in Wall Street indices and yields, boosting the haven demand for the greenback. Meanwhile, the European Central Bank (ECB) monetary policy announcement turned out to be a non-event, which disappointed the hawks and added to the weight on the euro.
EUR/USD technical outlook
At the time of writing, the EUR/USD pair is challenging daily highs near 1.2025, as the bulls keep their sight once again on the critical 100-daily moving average (DMA) at 1.2055.
Note that the price has failed to find acceptance above that hurdle since March 4.
Recapturing that level is critical to extending the upside towards Thursday’s high of 1.2069.
EUR/USD daily chart
The 14-day Relative Strength Index (RSI) edges slightly higher above the midline, allowing room for more gains.
On the flip side, the mildly bearish 50-DMA at 1.1955 could offer strong support. Ahead of that the sellers could target the 1.2000 psychological mark.
EUR/USD additional levels to watch
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