The upside momentum in EUR/USD remains unabated on Thursday, now assaulting the 1.0670 area, or fresh daily tops.
EUR/USD firmer on USD buying
Spot met extra buying interest after the greenback – when gauged by the US Dollar Index – broke below the area of previous support around 100.50, where also sits the 100-hour sma.
USD dynamics stay the sole catalyst for the pair’s price action for the time being, with DXY eroding weekly gains and reverting part of the February rally, which started with a rebound from lows in the 99.20 area on February 2.
The pair is thus posting gains for the second consecutive session so far, gaining over a cent since yesterday’s multi-week lows near 1.0520 and fully recovery the Yellen-induced drop, all in spite of better-than-expected results from the US docket and the hawkish stance from Yellen and other FOMC governors.
EUR/USD levels to watch
At the moment the pair is gaining 0.54% at 1.0656 facing the next resistance at 1.0700 (20-day sma) followed by 1.0715 (high Feb.8) and finally 1.0740 (100-day sma). On the flip side, a break below 1.0520 (low Feb.15) would target 1.0452 (low Jan.11) en route to 1.0339 (2017 low Jan.3).