EUR/USD jumps to fresh 2017 tops at 1.1235 on Merkel’s comments

Dhwani Mehta FXStreet

The rebound seen in EUR/USD over the last hour gained extra traction, following the comments from the German Chancellor Merkel on the Euro, which sent the rate back beyond 1.12 handle.

EUR/USD eyes 1.1250

Amid underlying risk-off theme in Europe, the shared currency received an additional boost from Merkel comments, citing that euro is "too weak" and hence, makes German products cheaper, when speaking on the German trade surplus in Berlin.

However, further upside lacks follow-through in EUR/USD, as investors turn cautious ahead of Trump’s Welcome address, as he arrives in Israel. Meanwhile, the greenback turns negative to trade just under 97 handle, as markets digest the latest Fitch report on the US economy

All eyes now remain on the speeches from the FOMC member Harker and Kashkari due later in an otherwise quiet American session.

EUR/USD Technical Levels

Selena Nicholas, Investment Analyst at XM notes: “Today’s move lower will eye support at 1.1100. A breakdown of this level would open the way towards 1.1000 and then target the 200-day moving average, currently around 1.0816. A firm break of this support would indicate a reversal in the medium-term uptrend that started from the January 3 low of 1.0340.”

“The sharp rise of the 50-day moving average, which looks like it is about to cross above the 200-day MA, is giving a strong bullish signal and is supportive of the medium-term bullish bias. A firm break above 1.1200 could see prices target the 1.1300 area, Selena adds.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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