The euro keeps showing strength against the U.S. dollar, indicating a shift to a larger risk appetite among global markets.
Yesterday (June 2), EUR/USD climbed 0.3% to 1.1172, the highest closing level since March 12. The currency pair also posted a six-day rally.
Obviously, the euro will continue to outperform the dollar - widely regarded as a haven currency - as long as investors expect global economies to keep reopening and European authorities to launch more stimulus measures to boost market sentiment.
In its coming monetary policy meeting to be held on Thursday (June 4), the European Central Bank is expected to keep its key interest rate unchanged at Negative -0.50%.
Meanwhile, caution is advised as investor sentiment could be impacted - and risk appetite reduced - by a potential upsurge in the number of virus cases, wide-spreading violent protests in the U.S., and escalating tensions between the U.S. and China.
On an Intraday 30-minute Chart, EUD/USD remains on the upside after breaking above a Triangle Pattern.
The trailing key support has been raised to 1.1160.
While proceeding to the upside, EUR/USD is expected to encounter resistance at 1.1225 (100% Fibonacci extrapolation from 1.1160).
Above 1.1225, the next level of resistance would be found at 1.1245.
Bullish investors should reconsider their positions once the currency pair returns to this level.
Source: TradingView, GAIN Capital
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