EUR/USD climbs to a six-week high of 1.2200
Despite yields ticking higher to start European morning trade, the dollar is actually tracking lower across the board – except against the yen – in the major currencies space.
EUR/USD has climbed to a fresh high of 1.2200, its highest level since 13 January, as buyers look to try and break through resistance around 1.2170-97 at the moment.
The two key levels to watch going into the daily close will be the 22 January high @ 1.2190 and the 61.8 retracement level of the swing move lower this year @ 1.2197.
Keep a daily close above that and buyers will have more confidence in chasing a further move to the upside, with the dollar also looking vulnerable elsewhere.
AUD/USD is inches away from touching 0.8000 while USD/CAD is being pressured down to three-year lows just below 1.2500 at the moment.
While the dollar may be failing to find shelter now, the drop in US futures reflect more of a rotation trade rather than any broad risk aversion. But if the latter is to come around, just be mindful that it could help to keep the dollar somewhat supported later on.