EUR/USD is trading at its highest levels since January 2019 above 1.1500
The firm notes that the pair has to sustain gains above 1.1500 if it is to shift to a higher trading range around 1.1500 to 1.2000 should support at the lower bound be defended.
Adding that the euro is staying more underpinned as it is "easier to buy" as compared to the dollar, due to the little downside scope in European rates against that of the US.
They also see EUR/JPY rising in tandem with EUR/USD given the limited movement in USD/JPY, which does make sense given that Treasury yields are continuing to go nowhere.
As for EUR/USD in itself, the headline remark pretty much says it all. The pair is now holding a break above key resistance around 1.1495-00 and that reaffirms buyers' conviction as we look towards the second-half of the week.
But the risk for any upside move is that if that break fails to hold. Otherwise, as long as the risk rally remains intact, EUR/USD may still look poised to continue its march higher. The only downside risk is positioning flows, which may start to look at bit stretched.
That could limit gains in the short-term but the technical picture (⬆️) does look pretty favourable for the euro at this stage.
