EUR/USD breaks above 1.1000; what's next?

FXStreet (Tokyo) - The Euro is rallying against the US Dollar as investors are trading in USD longs profit taking mode following the weak number in the nonfarm payrolls and ahead of a long weekend. The EUR/USD is now trading above 1.1000.

After climbing 130 pips from 1.0880, the EUR/USD tested prices above 1.1000; highs since March 26. Currently, EUR/USD is trading at 1.1017, up 1.28% on the day, having posted a daily high at 1.1023 and low at 1.0864.

EUR/USD spot is in overbought territory according to the hourly FXStreet OB/OS Index, while the FXStreet Trend Index is slightly bullish.

Euro to Dollar exchange rate levels

The USD is now trading in profit taking so more declines in the USD against its major competitors could be expected. There is not much room for more dollar gains in the coming days as investors will doubt about a sooner hike rate.

Remember that last week in an interview in the Live Analysis Room, the MNI's Senior FX Reporter Vicki Schmelzer affirmed that a EUR/USD above 1.1050 would be the first signal for a rally towards 1.1500.

As for the short term. if the pair consolidates gains above 1.1000 it will find resistance at the next hourly supply level of 1.1030, then 1.1050 and 1.1100. To the downside, supports are now at 1.1000, 1.0950 and 1.0900.

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