Euro Bulls Emboldened as Currency Clears Multi Month Roadblocks
- Currency surges Tuesday after ECB’s Draghi downplays deflation
- Rally continues today as traders ignore talk of market misread
Euro Bulls, Bond Bears React to Draghi Comments
It took six attempts for the euro to break the $1.1300 resistance level this month. One day after breaching the barrier, the common currency is fast approaching the next line in the sand amid a rally that now has analysts pondering what it will take to slow the best performing major currency this quarter.
For chartists from JPMorgan to RBC, there are few obstacles remaining before the euro lifts off in a sustained rally amid fading political risks and a monetary policy shift on the horizon. With the $1.13 post-U.S. election high giving way, $1.1428, a level last reached as traders awaited the result of the U.K.’s vote to leave the European Union a year ago, remains one of the last lines of defense for euro bears before the common currency advances to the $1.17 area last seen in August 2015.