EUR/USD challenges highs near 1.0980

FXStreet (Edinburgh) - The European currency continues to gather further pace against the greenback on Tuesday, pushing EUR/USD to the area of daily highs near 1.0980.

EUR/USD bounced off 1.0930

After dropping to session troughs around 1.0930 during overnight trading, the pair has managed to recover the buying interest and attempt another bull run to the upper bound of the daily range near 1.0980/85.

Spot continues to trade in the positive territory along with a softer tone in the US dollar, all against an empty docket in Europe and with Factory Orders taking centre stage across the pond.

EUR/USD key levels

As of writing the pair is advancing 0.28% at 1.0981 facing the next resistance at 1.1080 (high Jul.29) followed by 1.1113 (high Jul.31) and then 1.1130 (high Jul.27). On the flip side, a break below 1.0921 (low Jul.31) would target 1.0893 (low Jul.30) en route to 1.0811 (low Jul.11).

USD/JPY: Bulls struggling around 124, awaits fresh incentives

The US dollar is seen trading directionless versus the Japanese currency in the mid-European session, now pushing USD/JPY towards 124 barrier, as the major continues to remain pressured on weaker US dollar across the board ahead of US factory orders data due to be released later in the New York session.
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AUD/USD: bid tone intact, nears 0.7400

The bid tone on the Aussie remains intact as the AUD/USD pair printed a fresh session high of 0.7395 despite weakness in commodity prices and an uptick in the treasury yields.
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