EUR/USD inches to a session high of 1.2170
The dollar is maintaining a modest advance against the aussie and kiwi, with even the yen trading lower against the greenback so far in European morning trade.
However, EUR/USD continues to be a technician’s dream as the breakout extends further with the pair now rising to a session high of 1.2170.
The break above 1.2000 set the stage for a classic breakout and buyers have ran with that ever since. There isn’t much to comment as despite the dollar’s steadiness so far, it remains in a vulnerable spot across most major pairs all things considered.
As mentioned before, I would argue this paves the way for EUR/USD to roam between 1.2000 and 1.2500 through Q1 2021 but this move is certainly gathering some pace.
The fear is that it might trigger a response by the ECB and as with all consensus trades, the squeeze/pullback can get rather violent if and when it comes.