The Euro continued to rise in today’s sessions, following on from yesterday’s positive US session, which saw the Euro gain over 100 pips against the USD. The rise in the Euro is believed to be further to support that was gained after Oil prices and various other commodities showed signs of recovery, while a down trend in the US Treasury Yields weighed heavily on the Dollar.
The current level of the EURUSD see’s it over 200 pips above the recent 7 week low that was reached at the end of late week. Throughout today’s sessions the Euro has thus far gained over 60 pips as it rose steadily from an Asian session open of 1.4221 to a high of 1.4286. The pair is currently trading around 1.4260, which is also the current 55-day moving average and a strong resistance level for the single currency. Should the pair convincingly break above this level, the next resistance is seen around the 1.4340’s – close to last Friday’s peak.
The US FOMC minutes, scheduled for release later in the day, is the next high impact economic event for the EURUSD. Should a hawkish outlook with regards to inflationary measures be portrayed by the minutes, we may expect the EURUSD to fall back towards its current 7 week low of 1.4047.