EURUSD Jumps Above Two Year Highs. Can Bulls Break Above 1.20?

EURUSD Euros and Dollar bills

EURUSD jumps to the highest level since May 14, 2018, as the sell-off in USD continues across the board. The U.S. dollar index DXY hit two-year lows at 92.35. Low real yields and the delay in a new stimulus package shifts investors attention away from the safe-haven USD.

The risk-on sentiment is across the board as the major Wall Street indices approach record highs, while all the assets denominated in USD enjoy today a strong rally.

USA delivered today better than expected economic data after yesterday’s disappointment from N.Y. Empire manufacturing index. The U.S. Housing Starts Change increased to 22.6% in July from the previous 17.3%.

The U.S. Building Permits registered in at 1.495M beating the expectations of 1.32M in July reaching the 2019 levels. The Building Permits Change rose to 18.8% in July from the previous 2.1%.

EURUSD Price Daily Technical Analysis 

EURUSD is 0.50% higher at 1.1929 making fresh 27 month highs, as the rally after a short correction continues with a new leg higher targeting now 1.20. Bulls control the action as the pair remains inside the ascending trend channel that formed since June. 

Resistance for the pair is at the daily high around 1.1965. A break above would meet selling pressure at the 1.20 round figure. In case of a break higher, then we might see a sharp rally to 1.21. 

Bears hope for a correction as the pair is inside the overbought territory. Immediate support would be met at 1.1864, today’s low. More buying interest might emerge at 1.1785 the low from August 14. A break below 1.1785 would also signal the exit from the ascending trend channel, which might be the start of correction towards the 50-day moving average at 1.1490.


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EURUSD Daily Chart

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