EUR/USD reverses sharply  and jumps toward 1.0900

EUR/USD went from trading at the lowest since March to rise to fresh daily highs in a few minutes. The pair gained momentum amid a sharp decline of the Greenback. The US dollar index tumbled from multi-month highs at 99.03 to 98.60. 

EUR/USD rebounds 

The pair bottomed earlier at 1.0850. The area above 1.0850 contained the decline and the euro not only stabilized but jump to the upside, erasing daily losses in a few minutes. The euro rose to 1.0896 hitting a fresh daily high. It was trading at 1.0885, marginally higher for the day but far from the lows. 

The decline of the US dollar boosted the pair. There were no particular triggers for the move. Also, US bond yields changed dramatically the intraday trend. Equity prices in the US remain in negative territory. 

In Europe, Mario Draghi is speaking but his words created no surprise so far. He mentioned that monetary policy is working as expected and gave no particular clues about the purchase program. He said that he would prefer not to have to keep interest rates at low levels for an excessively period of time. 

Technical levels 

Resistance levels could be seen at 1.0895/1.0900 (daily high),  1.0915 (Oct 20 low), and 1.0930 (Oct 21 high). On the opposite direction, support might lie at 1.0875 (20-hour moving average), 1.0850 (daily low) and 1.0820 (Mar 10 low).