EUR/USD is trading closer to 1.11, the highest since early February,
rising amid USD weakness The Fed is expected to cut interest rates in response to the coronavirus crisis. US yields are at record lows. Germany may also loosen its spending rules.
From a technical perspective, the pair on Friday finally managed to break through previous strong support now turned resistance near the 1.10 mark. The mentioned handle coincides with 50% Fibo. and should now act as a key pivotal point for short-term traders. Meanwhile, the fact that the pair has already found acceptance above 50-day SMA might have already shifted the near-term bias in of bullish traders.
Some follow-through buying above the 61.8% Fibonacci level of the 1.1239-1.0778 downfall, around the 1.065-70 region, will reinforce the constructive outlook and set the stage for a move towards reclaiming the 1.1100 round-figure marks. The momentum could further get extended towards testing the top end of over one-year-old descending trend-channel, currently near the 1.1175 zone.