EUR/USD rises to test 1.1650 amid a weaker dollar

• US dollar tumbles across the board amid risk appetite.
• Euro turns positive versus the dollar and negative against the pound.

The EUR/USD is rising modestly on Wednesday after making a rebound from 1.1615. During the American session, the pair climbed to 1.1651, slightly below the daily highs. The euro remains unable to break the 1.1650 barrier.

DXY drops as EUR/USD rebounds

The EUR/USD erased daily losses amid a decline of the greenback across the board. A risk-on mood across financial markets weighs on the dollar. The DXY is falling by 0.15% even as US yields hold around monthly highs.

On Wall Street stocks are rising. The Dow Jones gains 0.35% and the Nasdaq 0.08%. Crude oil prices are up, with WTI rising 0.60%. Gold gains more than 10$. Positive corporate results contribute to optimism. Later on Wednesday, the Federal Reserve will release the Beige Book.

From a technical perspective, the recovery of EUR/USD remains capped by the 1.1650 area. A break higher should clear the way to more gains, exposing Monday’s high of 1.1669. On the flip side, 1.1615 is the daily low, a support area and also the 20-day moving average. A daily close clearly below should weaken the euro.

Technical levels