The Euro has made a solid start to the week, as bulls capitalize on the US dollar’s continued bearishness to push the EUR/USD higher by 0.32%.
This move comes as the latest CFTC Positioning Report shows speculators adding more gross long positions on the Euro for the 6th week in a row. This lifts the net longs on the Euro to the highest levels seen since early March.
With this report, the Euro finds itself gaining from a triple combo of weakness on the greenback, improving vaccine rollouts across the Eurozone, and the optimism surrounding EU economic recovery.
As such, the EUR/USD looks set to close higher for the 2nd consecutive month.
Technical Outlook for EUR/USD
The surge in the active daily candle came off a bounce on the 1.21792 support level. This bounce has put 1.22416 in the crosshairs. Above this level, 1.22768 and 1.23490 are additional upside targets.
On the flip side, a rejection at the 1.22416 resistance could lead to a retest of 1.21792. This retest also challenges the lower boundary of the channel. A breakdown of this area brings 1.21487 into the picture, with 1.20890 and 1.20000 serving as additional support targets.