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EUR/USD reaches new post-Brexit high

EUR/USD is trading at 1.1240  1.1263, the highest level since June 24th, the day after the EU Referendum – Brexit.  The pair is about 50 pips higher on the day, above the previous highs seen earlier this month.

The past move higher did not survive more than a day, and the pair returned to the previous frustrating range. Is this break for real? It is not the first time we asked this question and there is no easy answer with this currency pair.

Why is it rising this time? This is an easier question. The move higher is driven by the weakness of the US dollar. As some European traders return to their desks after a holiday yesterday, the  echoes of Friday’s poor retail sales report  still weighs on the US dollar.

In Europe, we will later get the German ZEW  business  survey. This is expected to show that a bounce in confidence  in August, after a post-Brexit fall in July.

See how to trade the German ZEW Sentiment with EUR/USD

Here is how it looks on the daily chart. 1.1240 is a line of resistance and confirmation is still awaited. Higher above, 1.1335 is the next  cap followed by 1.1420, the high seen just before the EU referendum results came out. On the downside, we find 1.1190 and 1.1130.


euro dollar August 16 2016 daily chart

More: What is the EUR/USD range this summer?

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.