EUR/USD keeps rising above 1.1900, hit 2-month highs
The EUR/USD pair continued to rise during Friday’s American session and extended weekly gains. The euro is gaining versus the US dollar for the fourth day in a row, in a 200-pip rally. Recently it reached 1.1943, the highest level since September 22.
The combination of a stronger euro and a slide of the greenback across the board pushed EUR/USD sharply higher during the last sessions. Today, another positive round of Eurozone economic data (German IFO) added support to the euro. In the US, the Markit PMI came in below expectations. It still pointed toward economic expansion but the Service sector at the slowest pace since July.
US: November data indicated a positive month for the manufacturing sector - Markit
The greenback is also being affected by falling US bond yields. Near the end of the shortened session, the 10-year yield was at 2.335%, down from previous 2.35%. In Wall Street, equity prices were rising. The Dow Jones was up 0.22% near record highs.
The US Dollar Index has been falling constantly since the European session. It reached the lowest level in six weeks and it was testing October lows near the 92.55 zone.
EUR/USD Technical levels
The pair is breaking the strong 1.1880 area that now could be seen as an immediate support. The breakout favored the acceleration of the rally. That area capped several times in October and also last week.
Resistance levels are seen at 1.1940/45 (Nov 24 high), 1.1970 (Sep 18 high) and then FXStreet's technical confluence indicator identifies 1.2040 as a strong level. On the flip side, support now might lie at the mentioned 1.1880, followed by 1.1855 (Nov 23 high) and 1.1825 (Nov 17 & 22 high).