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  • Weaker US dollar across the board, DXY drops 0.50%.
  • EUR/USD up for the second day in a row, up 150 pips since Monday.

The EUR/USD pair broke above 1.1310 and gained momentum. Recently it spiked to 1.1348, the highest intraday since June 16. It then pulled back and it was trading at 1.1320, consolidating important daily gains, and up 155 pips from Monday’s low.

The move higher took place amid a slide of the US dollar across the board. The greenback tumbled, particularly versus the Japanese yen. The DXY fell to 96.39, the lowest since June 11. In two day, the index lost five days of gains.

The latest round of US economic data came in better-than-expected with New Home Sales and the Richmond Fed. Previously the PMI Markit showed a strong bounce in June. The economic numbers failed to benefit the dollar.

In Europe, the PMIs rose more than market consensus and boosted modestly the euro. Those numbers contributed to the improvement in market sentiment.

From a technical perspective, EUR/USD is testing the 1.1350 area.  A break above 1.1350 would signal more gains ahead, with the next resistance seen at 1.1390. On the flip side, now support levels await at 1.1305, 1.1280 and 1.1250.