Thanks to a poor US retail sales report and ongoing Brexit-related optimism, the EUR/USD exchange rate continues to squeeze higher. A few moments ago, it broke above last week’s high at 1.1060ish. With the Dollar Index also struggling, and given the narrowing of the Germany-US yields, the path of least resistance continues to remain to the upside for this pair. The bulls will be eyeing the top of the rising channel or the Fibonacci retracement levels shown on the chart below as possible target. Key support comes in at 1.1045. For as long as this level holds, the bulls should remain happy. However, a break back below this level, or ideally a closing break sub 1.10, would probably invalidate the bullish argument.

Figure 1:

EURUSD

Source: eSignal and FOREX.com.

 

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