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The Euro (EUR) edges higher against the US Dollar (USD) on Monday, with EUR/USD climbing to one-week highs, as broad-based weakness in the Greenback continues to dominate price action. At the time of writing, the pair is trading around 1.1910, up nearly 0.74% on the day.
Meanwhile, the US Dollar Index (DXY), which tracks the Greenback against a basket of six major currencies, is trading near six-day lows around 96.98, extending its decline for a second straight day.
From a technical perspective, the daily chart shows EUR/USD stabilising above its key moving averages. The 21-day Simple Moving Averages (SMA) has crossed above the 50- and 100-day SMAs, confirming a constructive bullish alignment, while all three averages continue to slope higher. The 21-day SMA at 1.1780 now acts as the first layer of dynamic support.
Price action also remains encouraging after breaking above a multi-month consolidation range in late January, with the pair now successfully retesting and rebounding near the former upper boundary of that range, turning previous resistance into support.
On the upside, the 1.2000 psychological handle and the January 27 high at 1.2082 form a near-term resistance zone. A decisive daily close above this area would confirm a fresh bullish breakout and open the door for a deeper upside extension.
On the downside, as long as EUR/USD holds above its key moving averages and the upper boundary of the former consolidation range, the broader technical outlook remains constructive, with the 100-day SMA at 1.1678 acting as a strong support zone.
Momentum indicators remain supportive, with the Relative Strength Index (RSI) holding near 60, while the Average Directional Index (ADX) around 32 points to a strengthening underlying trend.
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