EUR/USD rises above its 100-day moving average, signaling potential further gains amid Fed policy focus and thin trading week.
The US dollar extended losses early this week, pressured by technical breaks in major currency pairs despite stable oil prices near $80 and sticky Treasury yields. EUR/USD climbed above its 100-day moving average, testing the 1.1586 Fibonacci level after failing to sustain a break last week.
Traders are eyeing the 200-day moving average at 1.1627 as the next resistance point, with limited economic data this week potentially allowing technical factors to dominate. AUD/USD also advanced, nearing a two-month high as buyers pushed past its 100-day moving average.
The moves come ahead of Fed minutes, which may provide further direction amid subdued market activity. Analysts note the dollar’s weakness reflects growing expectations of Fed rate cuts later this year.