The Euro rallies higher as risk on sentiment returns to financial markets. Yesterday, investors moved towards purchasing high beta currencies following the less aggressive stance from both the U.S and China in regards to their trade war. Moreover, talks within the Salzburg EU meeting pointed more towards the positive side when it comes to Brexit. The Euro was also supported by a slight cool down in the rise of U.S treasury yields which decreased the demand for the greenback. Additionally, the U.S Existing Home Sales figure printed lower than expected which put further downward pressure on the U.S currency. For today, traders should monitor economic data from the EU's side as they will be today's main drivers of the pair.
From a technical standpoint, the pair points towards a continuation in the bull rally as the three key moving averages are indicating upward momentum. Additionally, the pair has recently broke above the key 1.17605 resistance level paving the way for a rise towards 1.18215.
Support: 1.16633 1.16161
Resistance: 1.17605 1.18215