EUR/USD spikes to fresh session tops, comfortable above 1.18 handle

Haresh Menghani FXStreet

• Weaker USD offset mixed German IFO surveys and lifts back above 100-DMA.
• Diverging comments by Fed’s Kashkari and Kaplan does little to support USD.

The EUR/USD pair quickly reversed the early European session dip to sub-1.1800 level and jumped to fresh session tops in the past hour.

With investors looking past today's mixed German IFO business surveys, persistent US Dollar selling bias helped the pair to build on previous session's recovery move and jump back above 100-day SMA barrier.

The USD lost some more ground following some dovish comments by Minneapolis Fed president Neel Kashkari, which to some extent got negated by Dallas Fed president Robert Kaplan's signal for three rate hikes in 2018 and kept a lid on further gains.

Currently trading around the 1.1825-30 region, traders would now take cues from today's US housing market data, which along with a key Senate vote on a sweeping tax overhaul bill would drive the pair through NY trading session and possibly in the near-term.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes, "the range that has been limiting price action these last few weeks is determinate by the lows in the 1.1715 region, and sellers aligned at 1.1870. A break of any of such extremes is required to confirm some follow-through during the following sessions."

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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