The EUR/USD pair broke the Asian consolidation box to the upside, finally breaking free from the shackles of 1.0877/80 barrier. The spot now looks to regain 1.09 handle, which will pave the way for a test of multi-month highs reached at 1.0912 post-French election R1 outcome.
The Euro remains broadly underpinned amid a cross-driven rally, with EUR/JPY trading sharply higher, tracking the solid gains in USD/JPY backed by a renewed rally in the US yields.
Moreover, strong France manufacturing confidence for April combined with a rally in the German yields, further boost the sentiment around the common currency. Fading uncertainty over French election helps narrow the French-German yield spread, which in turn underpins the rally in the German yields.
All eyes now remain on the US consumer confidence and housing data due later today that could have a major influence on the prices. Also, tomorrow’s US tax reform plans announcement is eagerly awaited for further direction ahead of Thursday’s ECB policy decision.
EUR/USD Technical Levels
Technical resistances for the pair are aligned at 1.0900/20 (round number/ multi-month tops), 1.0946/50 (Fib R2/ psychological levels) and finally 1.1000 (key resistance). On the flip side, the spot finds next support at 1.0811 (5-DMA), a break below that level could open the door to 1.0757 (classic S2/ Fib S3) and 1.0736 (10-DMA).