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Euro Extends Gains As Dollar Weakens

The common currency recovered from last week’s losses. The euro gained 0.37% on Monday. The gains came mostly on a weaker greenback. The US core PCE price index came out flat on the month. Personal spending and income outlays also rose less than forecast, increasing by 0.1% on both counts.

Can the EURUSD Extend the Gains?

The common currency managed to bounce higher after price cleared 1.1140 to establish support. Price briefly dipped to this level on Monday before continuing to push higher on the day. With the recently breached support level at 1.1226, we expect the common currency to establish resistance at this level in the near term.

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