EUR/USD climbs to over two-week high as markets look to flip the risk-on switch

Technical Analysis

Author: Justin Low | eurusd

EUR/USD rises above 1.1300 for the first time since 26 March

EUR/USD H1 12-04
The dollar and yen are continuing to fall across the board as markets are starting to lean towards a more risk-on mood in the European morning.

US equity futures are now up by 0.3% and Treasury yields are also climbing, leading to currencies responding in similar fashion as well. AUD/JPY has now risen to 80.00 as a result, in search for a key technical break to the upside as highlighted here.

As the dollar slips further, we're seeing EUR/USD rise above 1.1300 and buyers could start to build on momentum for an extension to the upside here. Further resistance is only seen closer to 1.1325-30 before the 61.8 retracement level @ 1.1346 comes into play.

It has taken a while for markets to really settle on a narrative this week but perhaps we're starting to see signs of that now. That said, best be warned that we still have key earnings releases in US trading later with JP Morgan and Wells Fargo reporting. That could potentially scupper the current mood if they disappoint.

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