The EURUSD currency pair continues its upward momentum, reaching a new session high of 1.1860, an increase of 0.84% for the day. This surge has propelled the exchange rate above the previous yearly high recorded on July 1 at 1.1829, marking the highest level since September 2021. The trajectory indicates a robust bullish trend, as market participants remain optimistic about further gains.
Looking ahead, traders have their sights set on the next key resistance level at the double swing highs from August 2021, located near 1.1909. Although this level is approximately 50 pips away, it serves as a significant benchmark for buyers due to its historical relevance and concentration of resistance within the market.
On the flip side, the previous yearly high of 1.1829 has now established itself as the immediate support level. It is essential for buyers to defend this threshold to maintain the upward momentum. A more conservative risk parameter is set lower, at the July 24 high of 1.1788. If the EURUSD were to dip below this mark following today’s breakout, it could instigate disappointment among buyers, prompting profit-taking or new selling pressures.
In the broader currency market, the USDJPY has reached a new low, declining by 0.67%. Meanwhile, the USDCHF is underperforming significantly, falling by 0.99% and trading at its lowest level for the year, now below 0.78714. This drop takes the price to levels not seen since 2011, highlighting the ongoing weakness of the Swiss franc against its counterparts.
The AUDUSD is also making headlines, trading to new highs and approaching trend line and swing highs from 2024, specifically near 0.6687. The recent peak reached 0.6684 and continues to test this resistance zone, further indicating a bullish sentiment in the Australian dollar.
As the markets continue to fluctuate, traders are closely monitoring these developments for potential opportunities and shifts in momentum across various currency pairs.
