Investing.com – EUR/USD rose strongly on Thursday, benefiting from a largely hawkish ECB meeting that supported the Euro, while a wave of risk appetite curtailed interest investors for the dollar, a safe haven.
The Euro Dollar indeed reached a peak at 1.0954 on Thursday afternoon, the highest since May 11, and remains close to this peak on Friday morning .
As for the ECB, it should be recalled that the central bank raised its key rate by 0.25% as expected, while warning that a new similar rate hike is likely. Furthermore, the ECB also suggested that the debate remains open for a possible additional rate hike in September, which benefited the EUR/USD.
This rise in the currency pair was also reinforced by general dollar weakness in Forex, as the greenback lost its appeal as a safe haven as US indices posted strong gains.
With regard to the program for the day on Friday, it should be noted that the EUR/USD will still be likely to be influenced by a new estimate of the CPI for the Euro Zone at 11 a.m., as well as by the consumer confidence index according to the University of Michigan, at 4 p.m.
Technical thresholds to watch on EUR/USD
From a graphical point of view, it should be noted that the rise in EUR/USD on Thursday confirmed the breakouts above the 100-day MA and of the threshold of 1.08 made the day before.
The Euro Dollar has by elsewhere broke through the resistance zone of 1.09-1.0915. Now the next hurdle will be yesterday's high around 1.0950, before the psychological level of 1.10, then this year's high near 1.11.
If EUR/USD corrects, forex traders will watch the 1.09 level as the first potential support, before the zone formed by the 100-dma at 1.0805 and the psychological level of 1.08.
EUR/USD surges following the ECB, the Dollar falls on the backdrop of risk appetite
