- The EUR/USD gains further traction and climbs to 1.1350/55.
- The dollar loses its grip after opening in Wall St. on Monday.
- The risk sentiment remains firm at the beginning of the week.
The optimistic rating in the risk complex is now putting pressure on those in charge and is pushing EUR/USD to fresh peaks around 1.1350.
EUR/USD supported by risky trade
The EUR/USD adds to Friday’s gains above 1.1300 to Monday’s figure, opening the door to a potential test of last week’s highs around 1.1370.
On the other hand, the greenback extends the bearish note for another session, starting the fourth consecutive week with losses and well below the 97.00 mark.
Hopes for an end to the coronavirus pandemic continue to support the auction note in the risk universe, this time exacerbated after Pfizer Inc. and BioNTech SE received Fast Track status from the Food and Drug Administration (FDA) for two COVID-19 vaccine candidates.
Nothing beats the mention of wise data in Europe, while the monthly budget statement and the FOMC speech by J. Williams are nothing but hot air.
What to look for around the euro
The EUR/USD started the week on a positive note once again, still supported by the solid improvement in the risk universe and targeting last week’s highs around 1.1370. Meanwhile, the constructive view on the euro remains healthy and supported by the improvement in the region’s key fundamentals in the context of the current (and massive) monetary stimulus from central banks. In addition, the region’s strong current account performance also reinforces the attractiveness of the common currency.
EUR/USD levels to watch out for
Currently, the pair is up 0.49% to 1.1352 and a breakout of 1.1370 (9 July monthly high) would target 1.1422 (10 June monthly high) en route to 1.1495 (9 March 2020 high). On the other hand, the immediate challenge is 1.1168 (June 19 monthly low), followed by 1.1147 (March 27 high) and finally 1.1049 (200-day AMS).