EUR/USD clocks fresh 6-1/2 week high on Trump-led USD sell-off

EUR/USD clocked a fresh 6-1/2 week high of 1.0720 in Asia on the back of a broad based USD weakness. 

The currency pair closed higher on Friday at 1.07 after Trump promised to stir a "new national pride'' and protect America from the "ravages'' of countries he says have stolen US jobs. Trump’s

signal of protectionism has raised risk of trade wars and retaliatory tariffs. 

The American dollar could maintain the soft tone as Trump trade could continue to unwind. The Euro side of the story could be influenced by Draghi’s speech and Eurozone consumer confidence release later today. 

EUR/USD Technical Levels

The spot was last seen trading around 1.0715. A break above 1.0768 (Dec 7 high), above which the spot could target 1.08 (zero figure). A violation there would expose 1.0851 (Oct 25 low). On the other hand, failure to hold above 1.0707 (38.2% of Trump rally) would open the doors to 1.0684 (10-DMA) and then to 1.0640 (10-DMA).