FXStreet (Córdoba) – EUR/USD extended gains during the American session and reached its highest level in 2 weeks, with German 10-year yield rally as the main driver.
EUR/USD bounced from the 100-day SMA at 1.1078 and staged a strong comeback that has taken the pair as high as 1.1284 so far. At time of writing, the pair is trading at 1.1270, recording a 1.09% gain on the day, with immediate bullish target at 1.1325 (May 19 high).
Despite renewed uncertainty coming from the Greek front, EUR/USD has managed to rise more than 350 pips over the last sessions.
On Wednesday the ECB decided to keep its key rates unchanged and reassured it will proceed with the asset purchase program until September 2016. Meanwhile, more and more Eurozone officials continue to mitigate expectations of a Greek deal this week after yesterday’s bout of optimism.
A break above 1.1325 would pave the way toward 1.1465 (May 15 recovery high). Meanwhile, short term supports are seen at 1.1078 (daily low/100-day SMA) and 1.0975 (50-day SMA).
(Market News Provided by FXstreet)