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  • DXY extends losses below 93.00, amid risk appetite and lower yields.
  • EUR/USD gains for the second day in a row, off multi-month lows.

The EUR/USD pulled back to 1.1735 after the release of US data and resumed the move to the upside. Recently reached at 1.1775, the highest level since Tuesday’s Asian session. It remains at the top, supported by a weaker US dollar across the board.

A better-than-expected reading of the ISM manufacturing index added to the positive tone around markets on Thursday. The Dow Jones gains 0.48% and the Nasdaq 1.55%. US yields are lower with the 10-year at 1.67%, a three-day low. The DXY dropped below 93.00.

Short-term outlook

The recovery of the pair alleviated the bearish pressure. The trend still points to the downside, but after being able to defend the 1.1700 zone, the euro is now with a positive outlook in the short term. More gains are on the cards while above 1.1760. The next strong resistance is located at the 1.1800 zone.

On the flip side, at 1.1750 a support is seen followed by 1.1730. The key area continues to be 1.1700: a break lower could trigger more volatility and losses.

Technical levels