EUR/USD rebounds, still remains under 1.2100

• Euro trims losses versus the US dollar, fails to recover 1.2100.
• Greenback post mixed results across the board as yields pullback.

The EUR/USD printed a fresh daily low at 1.2060 and then rebounded, rising above 1.2080. Earlier on Monday, the pair climbed to 1.2116, reaching the highest level in two months.

DXY up on JPY, EUR

The US Dollar Index is modestly higher on Monday, trading around 90.85, supported by the decline in EUR/USD and gains in USD/CHF and USD/JPY. The positive tone around the greenback eased amid a decline in US yields. The 10-year yield dropped from near 1.60% back to 1.56%.

There is no clear direction across currencies on Monday. In Wall Street, equity prices are modestly higher. The Dow Jones gains 0.02% and the Nasdaq 0.53%. Data from the US showed a lower-than-expected increase in durable goods orders in March. The key event of the week will be the two-day FOMC meeting. The Federal Reserve will announce its decision on Wednesday. No change in the policy is expected.

Short-term outlook

The main trend continues to point to the upside in EUR/USD. For the next hours, the euro needs to rise above 1.2090 (20-hour moving average) to turn the intraday bias bullish. A consolidation under 1.2065 would keep the doors open to a deeper correction. Below, the next support stands at 1.2040.

Technical levels