- EUR / USD gains additional pace and is approaching the 1.1500 mark.
- The dollar loses more ground and falls to lows of several weeks.
The optimistic tone in the complex associated with risk has pushed the EUR/USD more than 40 pips higher to hit fresh 2-month highs at 1.1478 on European morning Thursday.
EUR / USD rises with the sale of the dollar
EUR / USD advances for the third consecutive session this Thursday, amplifying the recent breakout of the multi-week consolidation phase that has prevailed since early December 2021.
The strong upward momentum in the pair comes after the renewed and notable sale in the greenback, which has been particularly exacerbated after US annual inflation figures showed that the increase was in line with previous December estimates (+ 7.0%) .
The daily pullback in the dollar comes amid a slight correction in US yields and the German 10-year bond, although they manage to stay close to recent highs.
On the domestic calendar, the Vice President of the ECB, Luis De Guindos, and Frank Elderson will speak today. Across the pond, producer prices and weekly jobless claims will take center stage followed by Fed members Lael Brainard, Patrick T. Harker and Charles L. Evans.
EUR / USD Levels
So far the pair is gaining 0.2% at 1.1470 and is facing the next resistance at 1.1508 (100-day SMA), followed by 1.1516 (200-week SMA) and finally 1.1692 (October 2021 monthly high).
On the other hand, a break below 1.1357 (55-day SMA) would head to 1.1272 (2022 low recorded on Jan 4) en route to 1.1221 (monthly low on Dec 15, 2021).
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