EUR/USD testing 1.0800, USD melts

Pablo Piovano FXStreet

The increasing selling pressure around the Dollar is allowing EUR/USD to attempt a visit to the 1.0800 neighborhood, or fresh daily highs.

EUR/USD up on USD-selling

The pair is advancing to fresh multi-week tops near 1.0800 the figure, levels last traded back in early February, opening the door at the same time for a test of YTD peaks near 1.0830.

In the meantime, sellers continue to punish the buck despite yesterday’s supportive comments from FOMC governors Harker and Evans, once again reasserting the solid health of the US labour market, the up trend of inflation towards the Fed’s goal and the most-likely event of two (or even three) rate hikes throughout the year.

While USD is still looking for another catalyst to resume the recent upside, EUR-bulls keep pushing higher, finding some extra motivation in recent French election polls suggesting the gap between presidential candidates Marine Le Pen and Emmanuel Macron continues to dwindle.

Nothing scheduled on the data front in Euroland today, whereas speeches by New York Fed W.Dudley (permanent voter, centrist), Kansas City Fed E.George (2019 voter, hawkish) and Cleveland Fed L.Mester (2018 voter, hawkish) should keep the attention on USD.

EUR/USD levels to watch

At the moment the pair is gaining 0.51% at 1.0794 facing the next up barrier at 1.0829 (2017 high Feb.2) followed by 1.0873 (high Dec.8 2016) and then 1.1300 (high Nov.9). On the other hand, a breach of 1.0726 (low Mar.17) would target 1.0704 (low Mar.16) en route to 1.0647 (100-day sma).

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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