EUR/USD soars on Trump’s comments and hits daily highs above 1.1670

• US President Trump spoke about concerns from rate hikes and sent US dollar sharply lower. 
• EUR/USD rebounded sharply from 3-week lows to 2-day highs. 

The EUR/USD pair rose from 1.1605 to 1.1677, hitting levels on top of yesterday’s highs. From the top pulled back and at the time of writing was hovering around 1.1655, marginally higher for the day. 

Trump’s comments triggered a sell-off of the US dollar the sent the EUR/USD pair from levels near the 3-week low it reached hours ago at 1.1573 back to the 20-day moving average that stands at 1.1660. US President mentioned that he is concern about rate hikes from the Federal Reserve and added that it might put the US at a disadvantage. 

The greenback trimmed gains across the board, even against commodity currencies. With recent moves, the euro printed a fresh 4-month high versus the pound. 

EUR/USD Levels to watch 

Despite the recovery, the bearish bias remains intact but the negative momentum eased with Trump’s rally. A daily close well above 1.1660/70 (20-day moving average) would be a positive development for the euro. 

On the upside, resistance levels could be located at 1.1660, 1.1695 and 1.1725. On the flip side, support might be seen at 1.1635, 1.1600 (Jul 18 low) and 1.1570/75 (Jul 19 low).