The euro keeps showing strength against the U.S. dollar, indicating a shift to a larger risk appetite among global markets.
Yesterday (June 2), EUR/USD climbed 0.3% to 1.1172, the highest closing level since March 12. The currency pair also posted a six-day rally.
Obviously, the euro will continue to outperform the dollar - widely regarded as a haven currency - as long as investors expect global economies to keep reopening and European authorities to launch more stimulus measures to boost market sentiment.
In its coming monetary policy meeting to be held on Thursday (June 4), the European Central Bank is expected to keep its key interest rate unchanged at Negative -0.50%.
Meanwhile, caution is advised as investor sentiment could be impacted - and risk appetite reduced - by a potential upsurge in the number of virus cases, wide-spreading violent protests in the U.S., and escalating tensions between the U.S. and China.
On an Intraday 30-minute Chart, EUD/USD remains on the upside after breaking above a Triangle Pattern.
The trailing key support has been raised to 1.1160.
While proceeding to the upside, EUR/USD is expected to encounter resistance at 1.1225 (100% Fibonacci extrapolation from 1.1160).
Above 1.1225, the next level of resistance would be found at 1.1245.
Bullish investors should reconsider their positions once the currency pair returns to this level.
Source: TradingView, GAIN Capital
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.