EUR/USD Hits Highest Level in Over Three Years
This morning, the euro surged above the 1.1300 mark against the US dollar for the first time since February 2022.
Throughout this week, the EUR/USD pair has broken through the highs of both 2023 and 2024.
Why Is EUR/USD Rising?
Amid the whirlwind of news surrounding the imposition and suspension of tariffs in USEU trade, one dominant factor stands out the sell-off of US bonds.
According to Reuters, long-term US Treasury bonds are being heavily sold this week. The yield on 10-year notes has jumped from 3.9% to around 4.4%, marking the steepest increase in yields since 2001. This may reflect a reaction by foreign holders of US debt to sanctions imposed by the White House, combined with growing uncertainty about the US economy especially as recession fears gain more media attention.
As a result, the US dollar is showing weakness against a range of currencies, including the Japanese yen, Swiss franc, and the euro.
Technical Analysis of EUR/USD
The chart reveals a clear ascending channel (marked in blue), with the price repeatedly interacting with its upper, lower, and median boundaries highlighted with markers and arrows.
Current bullish sentiment has pushed the pair towards the upper boundary of this channel. Its possible this resistance line could halt further gains, potentially leading to a correction perhaps down to the 1.11 level, which previously acted as a strong resistance point.
Read more: https://fxopen.com/blog/en/oa-eur-usd-hits-highest-level-in-over-three-years/
Text source: Forex Trading Blog
