- EUR/USD picks up extra pace and reclaims 1.1300 and beyond.
- Dollar-selling gathers further traction and drags DXY to daily lows.
- ECB’s De Guindos showed some optimism regarding growth in the region.
EUR/USD is advancing further north of the 100-hour SMA (1.1273) and is surpassing the 1.1300 barrier to clinch fresh daily highs near 1.1310.
EUR/USD bolstered by USD-weakness
EUR/USD continues to fade Tuesday’s retracement and it has currently regained the area beyond 1.1300 the figure on the back of the increasing selling pressure surrounding the buck.
In fact, the greenback is navigating the area of daily lows around 96.70 measured by the US Dollar Index (DXY), with losses picking up pace following a positive opening in Wall St.
Indeed, investors’ preference is now leaning towards the risk complex and seems to leave behind recent fears of the unabated progress of the coronavirus pandemic in the US.
Earlier in the session, ECB’s Vicepresident Luis De Guindos expressed some optimism regarding the prospects for economic growth in the region on the back of latest auspicious data releases.
What to look for around EUR
EUR/USD’s advance appears propped up by the better mood in the global markets, in turn sustained by optimism around the ongoing recovery post-pandemic. The constructive view in the euro, in the meantime, stays well and sound and supported by the improvement of key fundamentals in the region amidst the current (and massive) monetary stimulus by central banks. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.47% at 1.1326 and a break above 1.1348 (weekly high Jun.23) would target 1.1422 (monthly high Jun.10) en route to 1.1495 (2020 high Mar.9). On the other hand, immediate contention emerges at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1043 (200-day SMA).
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