The EUR/USD pair extended its break higher from a dip to 1.1170 region in Asia this Thursday, in the wake of FOMC minutes induced broad based US dollar softness.
EUR/USD catches fresh bids and nears 1.1250
Having taken a breather in early trades, the USD bears regained footing as we head towards late-Asia/ early Europe, driving the EUR/USD pair back towards the psychological levels of 1.1250.
The latest leg up in the major is mainly driven by renewed weakness seen behind the US currency versus its main peers, as 2-year treasury yields continue to crumble, despite risk-on trades persisting across Asia, in the wake of higher oil prices and firmer Asian equities.
The US yields and greenback were hit broadly by a dovish and cautious tone reflected by the FOMC in its minutes released late-Tuesday, with the 2-year treasury yields, which mimic the interest rate expectations, hurt the most, while the US 10-years finished -1.00% having ranged between 2.2519-2.2957% on the day .
More so, latest upbeat Eurozone fundamentals also continue to boost the sentiment around the Euro, just as the US housing data continue to disappoint. Looking ahead, oil-price action is expected to drive markets today amid a holiday-thinned European session, and ahead of the key OPEC meeting. Also, the US jobless claims, good trade balance and Fedspeaks will be closely eyed for further momentum.
The Swiss, French and German markets will be closed today in observance of Ascension Day.
EUR/USD Technical Levels
Valeria Bednarik at FXStreet noted: “The pair has a strong static support at 1.1080, a possible bearish target for the upcoming sessions, in the case of a deeper correction, with a break below it supporting continued slides into the weekend. An upward acceleration through 1.1210 on the other hand, should favor another attempt to retest November's high of 1.1299. Support levels: 1.1160 1.1120 1.1080 Resistance levels: 1.1210 1.1260 1.1300.”
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