EURUSD

The ongoing general optimism above the 233-day exponential moving average (105.15) highlights the short-term reaction thought with the Classic Dollar Index trading below the 34-day average (107.60). Recent developments support this notion, directing the index's movement towards the 106.50 level. As we enter the new week, the U.S. stock market is closed due to Presidents' Day. Meanwhile, the speeches of Fed officials Harker and Bowman, as well as Buba President Nagel, can be monitored in the data flow.

The EURUSD pair continues its movement above the 1.0375 – 1.0430 region, where the 55 and 233-period averages are located, due to reaction sales in the DXY. This situation may create a movement area towards the 1.0605 barrier. Particularly, the 1.0480 level should be closely monitored to determine whether the upward movement will continue or if there will be pressure on the averages. In the event of pressure, sustained movement below the averages is necessary for the pair to return to its negative trend. Under this condition, new pricing behaviors towards the 1.0175 low may be observed. Key levels of the day: 1.0375 – 1.0430 region.