EUR/USD breaks above 1.1200, first time since November

Matías Salord FXStreet

EUR/USD finally broke above 1.1200 and climbed to 1.1211, hitting a fresh 6-month high. The pair remains near the highs holding a bullish tone as the US dollar drops across the board.

The euro is about to end the week with a gain of almost 300 pips, the best performance in months, even larger that those that followed the French Presidential election. The main driver appears to be dollar weakness.

The greenback is trading at low across the board, excluding the Japan yen. The rally in the equity market and the stabilization in the bond market, kept USD/JPY in ranges. The Dow Jones is rising 0.82%, is still down for the week, but it moved significantly away from the lows.

If EUR/USD extends the rally, resistance levels could be seen at 1.1210/15 (May 19 high), 1.1245/50 (Sep high) and 1.1300 (psychological). On the downside, the area around 1.1200/1.1195 could become a short-term support followed by 1.1170 (May 18 high) and 1.1095 (May 19 low).

Week ahead

The key event next week in the US will be the release of the FOMC minutes. Traders will look for clues about the next rate hike. Also, Trump politics will be watched closely. In the euro area, the PMIs (May - preliminary) and the IFO expectations survey will be released.

Fed's Bullard: Would not object to June hike

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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