EUR/USD Current price: 1.1808
- Pressure on the dollar helped the common currency extend its gains.
- Profit-taking could see the pair easing Friday, but bulls retain control.
The EUR/USD pair reached 1.1839, its highest since mid-May, as the greenback remained on the back foot, undermined by the concerns about US protectionism measures triggering clashes between the country and most major world's economies. The common currency, on the other hand, kept finding market's favor on mounting speculation the ECB will announce the beginning of the end of QE in the next week policy meeting. During the European session, the EU released a revision of its Q1 GDP, which confirmed a 0.4% economic growth in the three months to March. The US offered a minor macroeconomic headline, initial jobless claims for June 1st that resulted at 222K, beating expectations of 225K. This Friday, Germany will publish its April Industrial Production and Trade Balance figures, while the US won't release anything of relevance. Next week will be a whole different story, with the Trump-Kim meeting, US inflation Fed and ECB's meetings among other relevant releases.
The pair retreated from the mentioned high but held above the 1.1800 figure, maintaining the positive tone by the end of the day. The rally stalled a few pips below the 38.2% retracement of the previous 7-week´s decline at 1.1855, where, in the 4 hours chart, the pair also has a bearish 200 SMA. In the same chart, however, the 20 SMA advanced above the 100 SMA, both below the current level, while technical indicators reached overbought levels before losing directional strength. Nevertheless, the risk remains leaned to the upside, at least as long as it holds above the 1.1730 price zone, where it has the 23.6% retracement of the same decline.
Support levels: 1.1775 1.1730 1.1690
Resistance levels: 1.1855 1.1890 1.1925
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