EUR/USD breaks above 1.1000 after Lockhart comments

FXStreet (Córdoba) - EUR/USD gathered pace and broke above the 1.10 mark as the dollar weakened across the board after Federal Reserve Bank of Atlanta President Dennis Lockhart said liftoff “is close” but refrained from expliciting September.

EUR/USD broke above several resistance levels and rose to test the 100-day SMA at 1.1035 before slowing. At time of writing, the pair is trading at 1.1023, recording a 0.55% gain on the day.

Fed speakers drive the dollar

With no first-tier data, market’s mood has been driven by Fed speakers on Monday after Friday’s nonfarm payrolls data failed to convince investors a September rate hike by the Fed is imminent.

Earlier on Monday, Fed’s Vice Chairman Stanley Fischer said the US labor market is nearly back to full health, but that inflation remains weak. Meanwhile, Fed’s watcher WSJ Jon Hilsenrath stated that market inflation expectations are softer and could complicate September liftoff.

EUR/USD technical levels

In terms of technical levels, immediate resistances are seen at 1.1035 (Aug 10 high/100-day SMA) and 1.1095/1.1100 (50-day SMA/psychological level). On the other hand, supports could be found at 1.0925 (Aug 10 low), 1.0855 (Aug 7 low) and 1.0847 (Aug 5 low).

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