The thing is that the ECB’s chairman during his speech turned out to be rather optimistic, hinting the change was coming sooner than expected. He said the economy was going to grow above the trend, and we could even see the signs of acceleration.
However, now we have a question – how much higher may EUR/USD go? We haven’t seen that levels since May, 2016. And is European economy is really strong enough to support further currency appreciation?
Besides, we have Janet Yellen speech scheduled for tonight. And judging by the recent FOMC meeting, she is rather hawkish. And this may trigger the demand on USD.
It means that EUR/USD has little potential to go above 1.1335, and current levels are very attractive for the selloff with the nearest target at 1.1290 followed by 1,1220.
Senior Analyst at Capital Markets