Thursday ended with the EUR/USD being high above of local resistance of 1.10. What's the target now?
Euro reaches 2-1/2 year maximums vs. Swissie
On Friday, the euro tacked on to two-and-a-half year maximums versus the Swiss franch because optimism over an ascending euro zone economy as well as the possible winding down of monetary stimulus soon kept backing the common currency.
The currency pair EUR/CHF reached 1.1372 during European morning trade, which is the pair’s best outcome since January 2015. Then the pair consolidated at 1.1368, earning 0.91%.
The common currency has been mostly underpinned in recent weeks, after ECB Governor Mario Draghi told in June that in the nearer future the bank could soon get down to tapering its stimulus program.
In Switzerland, reports unveiled that this month the KOF Economic Barometer tacked on to 106.8 from June’s outcome of 105.8, ruining hopes for a surge to 106.0.
The common currency was also higher versus the greenback, with EUR/USD gaining 0.29% being worth 1.1713, rebounding from Thursday’s two-and-a-half year maximum of 1.1777.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.