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EUR/USD is trading above 1.22, benefiting from dollar weakness and Europe’s reopening. Is new energy from a long weekend enough for a breakout? Euro eyes a jump above tough resistance at 1.2245, Yohay Elam, an Analyst at FXStreet, reports.

Europe’s improving covid statistics and upbeat business sentiment may keep its bid

“As long as the Fed remains calm, the printing presses continue working – the bank buys $120 billion in bonds every month – and weakening the dollar. An interest rate hike is still beyond the horizon. Chicago Fed President Charles Evans and Randal Quarles are scheduled to speak later in the day.”  

“While Germany marginally downgraded its Gross Domestic Product read from -1.7% to -1.8% in the second quarter, optimism about the future has likely remained elevated. The IFO Business Climate is set to advance from 96.8 points reported in April to higher levels.”  

“Coronavirus statistics continue falling across the old continent, allowing countries to reopen to travel – except flying above Belarus. The return of British tourists to Spain and Portugal serves as a sign of normality. EU countries have vaccinated nearly 40% of their populations with at least one dose. While the US leads with almost 50% receiving one jab, the pace of inoculations is slowing.”  

“Euro/dollar is making its fourth attempt to challenge 1.2245. Above 1.2245, the next level of resistance is at 1.2280, followed by 1.2350, both seen earlier this year.”  

“Support is at 1.22, which cushioned EUR/USD earlier in May. It is followed by 1.2175 and 1.2155, the latter holding up the pair last week.”