EUR/USD searches for a breakout, runs up to 1.2250

EUR/USD D1 25-05

The tumble in the dollar against the yuan appears to be the key catalyst here as the greenback is now losing round across the major currencies bloc.

EUR/USD is up to its highest levels since early January, threatening a firm break above the February high of 1.2243.

With USD/CNH breaking to its lowest levels since 2018 and breaking a key technical region, that may yet result in added weakness for the dollar unless Chinese officials decide to smooth the process - though today's supposed efforts were rather half-hearted it seems.

As for EUR/USD, this sets up a good spot for buyers technically if they can hold a daily break above the February high of 1.2243.

That will pave the way for a potential retest of the January highs above 1.2300 next.