EUR/USD jumps above 1.1250 as US Dollar tumbles

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  • ERU/USD accelerates as the US Dollar falls across the board. 
  • Despite hitting fresh highs versus USD, the Euro is down against GBP, JPY, and CHF. 

The EUR/USD extended the move to the upside over the last hour, amid a decline of the US Dollar across the board after comments from Fed’s Williams. He mentioned that it is better to take preventative measures on rates than to wait for disaster to unfold. 

After William’s comments, US yields dropped to daily lows, and the US Dollar turned sharply lower. The EUR/USD pair printed fresh daily highs on top of 1.1250. Earlier today the pair dropped following a report from Bloomberg mentioning that the European Central Bank is considering modifying its inflation target. The common currency is still down for the day versus its European’s rivals. 

The EUR/USD found support above 1.1200 and rebounded, rising back to 1.1230. Recently it accelerated to the upside, breaking Asian session highs and climbed to     1.1268, the highest level since Tuesday. 

As of writing, EUR/USD is holding near the highs with a strong bullish momentum. If it consolidates around current levels, it could rise further to test the 1.1270 resistance area. Above at 1.1285, the next resistance might be seen. A slide back below 1.1245 would signal the euro is not ready yet to move away from 1.1200.

 

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