EURUSD

Due to the holiday period in Europe and the US, a low trading volume is observed in the markets on the first day of the week. The ongoing pressure on the EURUSD pair is affected by the rise in the US dollar index and the subsequent profit-taking. The dollar index is in search of a new direction by monitoring the reaction within the 108.20 – 108.50 range. Meanwhile, the Asian markets tracking the rise in the US and the support from the merger news of Japanese automotive giants increase optimism in global markets. However, the negative situation of the Richmond Manufacturing Index in the US creates a limited impact on the pair.

From a technical perspective, the EURUSD pair continues its negative trend by remaining below the 1.0480 level. On the daily chart, levels of 1.0385 and 1.0330 are monitored as support. Breaking the 1.0330 level in the pair could bring up the notion of 1 Euro equating to 1 Dollar. In upward movements, the resistance levels of 1.044 and 1.048 are being monitored. The RSI indicator is at the 40 level, displaying a negative outlook. The pair's 0.11% decline compared to the previous day indicates that the selling pressure continues.