EUR/USD Set to Close Above Key Level After Hitting More Than 2-Week High

Updated: Oct 10, 2020

The euro surged to a more than two-week high against the dollar on Friday, and looked to close above a key level that could signal further gains ahead, according to experts.

EUR/USD rose 0.56% to $1.1823, its highest level since September 21.

"A close above 1.1791/92 [in EUR/USD] should see bullish pressure return again,” Credit Suisse (SIX:CSGN) and noted that the currency pair failed in its previous attempts to close above the key level.  For a more prolonged push higher above $1.20, the eurodollar would need to clear $1.1918, the bank added.

Others, meanwhile, see the currency pair sticking to a trading range as there is little impetus for a significant move higher.

“There is no fresh momentum on the monetary policy front on either side of the Atlantic [...] Everything all told that suggests that EUR/USD will continue to move in a range between 1.16 and 1.1,” Commerzbank (DE:CBKG) said in note.

The more than two-month high for the euro comes just a day after the minutes of the European Central Bank’s previous meeting signaled further stimulus in the not-too-distant future.

ECB members were infavor of "keeping a ‘free hand’ in view of the elevated uncertainty," and stressed the need to "carefully assess all incoming information, including the euro exchange rate, and to maintain flexibility in taking appropriate policy action if and when needed," the minutes noted.

By Yasin Ebrahim

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