EUR/USD hit fresh highs as Wall Street extends losses
- Euro rises further as US stocks tumble.
- EUR/USD about to test Friday’s highs.
- Most gains followed ECB rate hike talk and Brexit optimism.
The euro jumped against the US dollar earlier today after Reuters reported that ECB members considered likely that the QE program should end in 2018 and also that they seem comfortable with the estimation of a rate hike by Q2 2018. Also the deal on the Brexit transition boosted the pound and also the euro.
More recently, the euro extended gains across the board and even trimmed losses versus the pound, as equity prices accelerated the decline. In Wall Street, the DOW JONES was down 1.15% and the S&P 1.30%. Risk aversion also drove US yields lower.
EUR/USD rose to 1.2334, hitting a fresh daily high. The pair was holding near the highs, looking at Friday’s highs (1.2335). The strong bounced from weekly lows, improved significantly the short-term technical outlook for the euro against the US dollar.
EUR/USD Technical levels
To the upside, immediate resistance is seen around daily highs at 1.2335 (Mar 16 high), 1.2360 and 1.2385 (Mar 15 high). On the flip side, short-term support levels might be located at 1.2295, 1.2280 (20-hour moving average) and 1.2255/60 (Mar 16 & 19 high).