EUR/USD jumps to test 2017 tops as USD sell-off extends

The US dollar continues to get battered by its European counterpart so far this session, with EUR/USD now flirting with daily tops of 1.1164, as the bulls now target 1.1172 - 2017 tops on its way to conquer 1.12 handle.

EUR/USD sees a 60-pips rally in Europe

The EUR/USD pair almost reversed yesterday’s entire slide and now consolidates near half-yearly highs, as the USD bears remain in command across the board, despite a sharp rally seen in treasury yields.

A renewed risk-on wave gripped Europe, sending the European equities higher in tandem with the US yields, in the wake of a rally in oil prices. Hence, it appears that markets have looked past political uncertainty surrounding the Trump administration.

Meanwhile, better-than expected Eurozone current account and German PPI data also keeps the sentiment around the shared currency underpinned. European Monetary Union Current Account s.a above forecasts (€32.3B) in March: Actual (€34.1B)

EUR/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet notes: “The bullish stance is clear intraday as in the 4 hours chart, technical indicators resumed their advances after correcting extreme overbought readings. The Momentum is bouncing strongly from its 100 level, whilst the RSI indicator is heading north around 71. In the same chart, a bullish 20 SMA contained declines, now around 1.1105.”

“Above the mentioned high, the pair has scope to advance up to 1.1210, en route to 1.1260, a major long term resistance, while dips towards the 1.1080/1.1100 region will likely attract buying interest,” Valeria adds.