The EUR/USD pair jumped almost 70 pips following a strong opening in European equities, extending its weekly rally up to 1.1346, a fresh 3-week high. The pair has broken above last Friday's high, the one posted after the awful US Nonfarm Payroll report for September.
The American dollar is under selling pressure as FED minutes were seen as dovish, and investors discarded any chance of a rate hike for this year in the US. The Central Bank acknowledged that inflation remains way too low, and that the global economic slowdown will likely kept it subdued. There are no relevant macroeconomic news scheduled in Europe, but a couple of FOMC members will hit the wires later on in the American session.
View the Live chart of the EUR/USD
In the meantime, the EUR/USD 4 hours chart shows that the price holds around the 1.1330 region, while the technical indicators have bounced from their mid-lines and present nice upward slopes, supporting a continued advance. In the same chart, the 20 SMA has advanced beyond the 100 and 200 SMAs, maintaining a strong upward slope and offering a dynamic support now in the 1.1260 price zone.
A continued advance through the mentioned daily high, should lead to an approach to the 1.1400 figure later on in the day, with a break above it seeing the pair extending its rally up to a major long term resistance at 1.1460. Below 1.1300 on the other hand, the pair can retrace down to 1.1250/60, where buying interest is expected to surge, containing the downside and pushing the pair back towards the 1.1300 price zone.
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