EUR/USD storms its way to 1.2030, fresh 2-1/2 year tops

The bulls are seen extending its control in the European session, taking the EUR/USD pair sharply higher to reclaim 1.20 handle and beyond.

EUR/USD: Will the buyers retain control above 1.2000?       

The offered tone behind the US dollar keeps growing bigger post-European open, sending the spot to hit the highest levels in more-than two years near 1.2030, as stops got triggered on a break above 1.2000 – natural resistance.

Markets witnessed aggressive selling in the US Treasury yields across the curve, after a renewed risk-aversion wave hit the European markets, in response to the escalating North Korean tensions. The USD index, which measures the strength of the greenback against six major currencies, followed suit and breached the key support located at 92.00, hitting the lowest levels since January 2015 at 91.81.

In the session ahead, the EUR/USD pair will continue to track the USD dynamics and sentiment on the European markets, as risk sentiment is likely to drive markets amid a lack of macro news from the Euroland. Meanwhile, the US CB consumer confidence data due later in the NA session will keep the US traders busy.

EUR/USD Technical Set-up  

According to Haresh Menghani, Analyst at FXStreet, “with short-term indicators gradually moving into overbought territory, the upward trajectory is likely to pause and the pair could enter a consolidation phase ahead of this week's important US macro data, starting with the release of Conference Board's Consumer Confidence Index on Tuesday followed by GDP revision on Wednesday and the keenly watched NFP on Friday. “

“On the flip side, any profit taking slide below mid-1.1900s might now find immediate strong support near the 1.1910-1.1900 region, which if broken could trigger a corrective slide and drag the pair towards retesting the trading range resistance break-point, now turned support near the 1.1830-25 zone,” Haresh adds.