Investing.com - The euro pushed higher against the dollar on Monday, recovering from Friday’s five month lows but gains looked likely to remain limited amid concerns over heightened geopolitical tensions.
EUR/USD touched highs of 1.3549 and was last up 0.10% to 1.3539, holding above Friday’s five month trough of 1.3490.
The pair was likely to find support at 1.3490 and resistance at 1.3571, last Wednesday’s high.
Investors remained cautious following the shooting down of a Malaysian airliner in eastern Ukraine late last week and the conflict in Gaza also weighed on market sentiment.
Trade volumes remained thin on Monday with markets in Japan closed for a holiday.
The euro remained under pressure after recent comments by European Central Bank President Mario Draghi were seen as the latest sign that the bank is open to further monetary easing measures to stave off the risk of deflation in the euro area.
In contrast, Federal Reserve Chair Janet Yellen indicated last week that interest rates may rise sooner if the economy continues to improve.
The euro was steady against the yen, with EUR/JPY at 137.07, off the five month lows of 136.69 set on Friday.
Elsewhere Monday, the dollar dipped lower against the Japanese currency, with USD/JPY easing 0.10% to 101.23, not far from Friday’s one week low of 101.07.