EUR/USD leaps to weekly tops near 1.0940 on USD-selling

EUR/USD has quickly surpassed the 1.09 barrier.
The dollar deteriorates further on poor weekly data.
The Fed announced extra stimulus measures worth $2.3 trillion.

Pablo Piovano FXStreet

Sellers are hurting the greenback and are motivating EUR/USD to gain extra steam to the 1.0940 region, or fresh weekly highs.

EUR/USD in tops beyond 1.0900, looks to Eurogroup

EUR/USD accelerated the upside in response to the rapid loss of momentum in the buck, particularly after another disappointing results from weekly claims and further easing measures by the Federal Reserve.

In fact, Initial Claims surged by 6.6 million on a weekly basis, showing that nearly 17 million US citizens claimed for unemployment insurance benefits in the last three weeks, all fanning the flames of an already deteriorated labour market.

Extra weakness hit the buck after the Fed announced a further $2.3 trillion stimulus in the form of extra loans in order to alleviate the negative impact of the coronavirus on US citizens, business and cities.

In the meantime, the single currency and investors will remain vigilant on developments from the upcoming Eurogroup meeting, with a potential joint debt issuance on the cards in order to help some state members to counteract the coronavirus fallout.

What to look for around EUR

The shared currency has managed to regain composure amidst low volatility and thin trade conditions on Maundy Thursday and ahead of the Good Friday holiday. On the macro view, recent better-than-expected results in fundamentals in both Germany and the broader Euroland opened the door to some respite in the prevailing downtrend, although the underlying stance still remains well on the negative side. In the very near term, however, headlines from the upcoming Eurogroup meeting (Thursday) are seen driving the mood around the euro.

EUR/USD levels to watch

At the moment, the pair is gaining 0.69% at 1.0931 and a break above 1.0941 (weekly high Apr.9) would target 1.0976 (55-day SMA) en route to 1.0992 (monthly low Jan.29). On the other hand, immediate contention emerges at 1.0768 (monthly low Apr.6) seconded by 1.0635 (2020 low Mar.20) and finally 1.0569 (monthly low Apr.10 2017).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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