EURUSD D1 16-06
EUR/USD daily chart

The pair is reflecting a heavy contrast of fortunes this week as the dollar is suffering following the Fed decision while the euro is bolstered by the ECB decision. That has seen a break back above the 100-day moving average (red line) and the 1.0800 mark, in a race to 1.0940 levels at the moment.

There are large option expiries at play today, which may be what is holding the pair back a little for now. However, from a technical standpoint, the path looks clear for a retest of the 1.1000 mark again.

The euro has been a standout this week, not only in EUR/USD, with EUR/JPY also rising to its highest levels since 2008 as the yen is being squeezed heavily in the past few sessions.

A more hawkish ECB has been part of that picture, with policymakers pretty much confirming one more rate hike in July while even talking up the possibility of another in September. That has gotten markets jumpy with plenty of revised calls for the ECB to raise interest rates to 4.00% now.

For EUR/USD, a test of 1.1000 will see some resistance amid offers in play but the real test will be getting above the April and May highs around 1.1075-95 next for buyers.