Euro Regains Strength As The EUR/USD Pair Pushes Above 1.1560

After underperforming from the start of the week, the European common currency is now regaining some of its lost position against the greenback.

The EUR/USD Pair Is Rallying Again

The European shared currency has managed to overcome the pessimism that had affected its performance earlier this week. The EUR/USD pair has been rallying over the past few hours, overcoming the 1.1500 levels earlier today and now settling above the 1.1560.

The greenback continues to underperform against the major currencies, and this has allowed the Euro to surge higher. The EUR/USD pair dropped to a 15-month low of 1.1524 during the American trading hours yesterday.

However, the pair has since recovered, thanks to the falling US Treasury bond yields helping the EUR/USD recover quickly. Investors are now more interested in the common currency ahead of the greenback, thanks to the performance over the past few hours.

The Euro also gained support from the comments from an ECB executive. According to ECB Governing Council member Francois Villeroy de Galhau, the Pandemic Emergency Purchase Programme is not the end of the central bank’s accommodative policy. He is optimistic that Europe will not hit the 2023 inflation target.

The EUR/USD pair could surge higher in the coming hours to hit the 1.1575 level if the current market condition is maintained.

Buyers Are Still Struggling To Take Control

Despite the EUR/USD pair currently in the positive region, buyers are struggling to take control of the market. The Relative Strength Index (RSI) indicator on the pair’s four-hour chart remains below 50 as it continues to trade below its 20-period SMA.

This indicates that the pair is not entirely bullish at the moment, and the greenback could regain control of the market over the coming trading sessions. If the EUR/USD pair turns bearish, the bulls would need to defend the first major support level at 1.1500. Further support could be seen at the 1.1525 (15-month low) level. Unless the bearish level extends further over the coming sessions, the EUR/USD pair should comfortably stay above the 1.1450 support point.