The euro recovered today to regain its highest level since the beginning of the week, following the decline in yields on U.S. Treasuries. The rise in bond yields and concerns over the Italian crisis over the budget deficit have played a role in the dollar's recent rise to reach its highest level in a month and a half Almost.
The dollar fell against a basket of currencies with the end of yesterday's trading after breaking an uptrend line on the 1-hour time frame to its lowest level since 3 October at 95.46. On the other hand, the EURUSD managed to break the neckline of an inverted head and shoulders pattern on the 1 hour time frame and is currently trading at 1.1526 levels.
The pound hit a 3 1/2 month high against the euro on optimism that Britain and the European Union could reach an agreement on Brexit soon. The pound rose against the dollar to its highest level since September 26 at 1.3209, while the euro fell against sterling to hit the level of 0.8723.
