EUR/USD headed toward highest close since Nov 11
|The euro trimmed gains against the US dollar during the American session but is still up for the day and headed toward the highest daily close since November 11. The greenback also lost ground against the pound and the yen.
EUR/USD started the week with a bullish gap that is still open. On European hours extended the rally and peaked at 1.0905. It failed to hold on top of 1.0900 and pulled back. The decline found support at 1.0860 and its trading at 1.0865, 70 pips above Friday’s closing price.
Today most relevant event regarding the pair was central bank talking. From the European Central Bank, Weidamnn said that the exit strategy must be discussed at the Governing Council while later, Praet said that monetary stimulus is still needed.
In the US, Evens, repeated that two or three rate hikes from the Federal Reserve are appropriate this year. He also signaled that the central bank can react quickly if inflation accelerates.
We have to discuss issue of exiting expansive policy on ECB Council - ECB's Weidmann
A very substantial degree of monetary accommodation is still needed - ECB's Praet
Technical levels
To the upside, resistance levels might be located at 1.0910 (daily high), followed by 1.0950. On the downside, support might be seen at 1.0860 (20-hour moving average), 1.0825/30 (last week high) and 1.0775 (Mar 20 high).
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