The demand for the single currency is gathering further traction on Friday, now lifting EUR/USD to fresh YTD tops in the 1.1170/80 band.
EUR/USD up, Dollar melts
The greenback – in terms of the DXY - has quickly left behind any hint of optimism following yesterday’s bullish attempt to the 97.80 area, now returning to the region of yearly lows in the 97.30/20 band while propelling the pair to the upper end of the recent range and closer to the key 1.1200 handle.
US political jitters continue to weigh on the buck today, as the recent controversy involving President Trump stays in centre stage and increases the uncertainty over the near term future of the Trump’s administration.
Furthermore, recent comments by ECB’s B.Coure sounded quite optimistic although he expressed doubts about allowing inflation to run above the central bank’s target.
EUR/USD levels to watch
At the moment, the pair is gaining 0.66% at 1.1176 facing the next up barrier at 1.1200 (psychological handle) ahead of 1.1300 (high Nov.9 2016). On the flip side, a break below 1.1073 (76.4% Fibo of 1.1300-1.0339) would target 1.0954 (20-day sma) en route to 1.0825 (200-day sma).