EUR/USD touches its highest levels since 5 February
The euro is picking up a strong bid on the session as buyers look to clear the 1.1400 handle now and break resistance around 1.1410-20 as well. Of note, price is also rising above the 100-day MA today and that will be a positive platform for buyers to build on from a technical perspective.
The real question now will be, can this break hold? The next key risk event up ahead is the US Q4 GDP release so that will help to provide traders with more clues on whether or not to extend the break here to the upside even more.
Inflation data from Europe today hasn't been stellar but they aren't necessarily bad either. If anything, the figures from France, Spain, Italy and Germany's states are collectively showing a bit of a rebound. That suggests that the ECB should not stray away from its rate guidance in next week's monetary policy meeting.
With downside risks only set to come from the central bank's downwards revision to economic forecasts, it's hard to imagine the euro being heavily sold off barring any surprises considering that the revisions are very much expected since the start of the year.
Either way, be wary of the repercussions of the technical break here. If price climbs above 1.1420 handily and the dollar suffers further from the GDP report, it could be a quick climb back towards 1.1500 for the pair.
