EUR/USD through 1.0800 handle, hits fresh multi-week tops

Haresh Menghani FXStreet

The greenback selling pressure remains unabated, lifting the EUR/USD major above the 1.0800 handle to its highest level in nearly 7-weeks.

Currently trading around 1.0810 region, testing session peaks, the pair's strong up-surge to 7-week tops could be attributed to centrist candidate Emmanuel Macron's strong performance in the first Presidential debate. Macron's strong performance was further reinforced by the OpinonWay poll, which further helped ease concerns over France’s presidential elections and lifted the pair beyond the 1.0800 handle for the first time since early Feb.

Moreover, persistent bearish sentiment surrounding the US Dollar, despite of yesterday's hawkish comments from a couple of FOMC members, remained supportive for the strong bid tone surrounding the major.

With no relevant fundamental drivers, in-terms of market moving economic releases, traders would remain focused on speeches from Kansas City Fed's Esther George and Cleveland Fed's Loretta Mester for any immediate respite for the US Dollar bulls.

Technical levels to watch

Immediate resistance is pegged near 1.0830 region (Feb. 2 high), above which the pair is likely to extend the upward trajectory towards the very important 200-day SMA strong hurdle near the 1.0900 handle. On the flip side, 1.0780-75 area now seems to protect immediate downside, which if broken might trigger a corrective slide back towards 1.0735-30 area. Any further weakness below this support should now be limited and hence, is likely to find strong support near the 1.0700 handle.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0763

50% Bullish
42% Bearish
8% Sideways

Bias Bullish

1 Month

Avg Forecast 1.0650

30% Bullish
60% Bearish
10% Sideways

Bias Bearish

1 Quarter

Avg Forecast 1.0558

15% Bullish
65% Bearish
20% Sideways

Bias Bearish

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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