EUR/USD jumps to fresh daily highs above 1.1250 as the US dollar tumbles

• EUR/USD breaks above 1.1250, remains below the 20-day SMA.
• US dollar weakens across the board, DXY turns negative.

The EUR/USD pair erased losses and jumped to 1.1256, hitting a fresh daily high. Earlier on Tuesday bottomed at 1.1190, matching last Thursday’s low. The rebound was driven by a decline of the US dollar across the board but the euro lagged behind other pairs due to the slide in EUR/GBP.

As of writing, EUR/USD trades at 1.1255, slightly below the daily top. The immediate resistance is seen at 1.1270 and a firm break above would strengthen the positive momentum, for a test of 1.1285/90 (June 29 high). A slide back under 1.1230 (20-hour moving average) would alleviate the intraday bullish pressure.

Overall, EUR/USD continues to move sideways below the 20-day moving average that stands at 1.1265/70 and supported by 1.1190 and then 1.1165. If price drops below 1.1160 more losses seem likely.

US turns negative

The greenback weakened considerable over the last two hours. The DXY is falling 0.10% after spending most of the day in positive territory. The better-than-expected Consumer Confidence reading failed to give support to the dollar.

Now attentions turns to Treasury Secretary Mnuchin and Fed chair Powell that will speak about how to boost the economy at a House Financial Services Committee hearing. Also month and quarter-end flows could trigger some volatility in financial markets.

Technical levels