The EURUSD pair continues to trade in a very strong manner over the last 24 hours as the pair broke through the 1.22 region again and made a beeline to the 1.23 region. It has not managed to break through this region so far but it appears only to be a matter of time before it does so. It was a holiday in the US yesterday but still it was all about the dollar weakness during the day.
EURUSD Eyeing 1.23
The dollar weakened across the board and it appeared as though the dollar bears did not seem to want to take any rest as they pushed the dollar lower despite the holiday in the US. It was all about the dollar weakness yesterday more than the strength in the euro and there was no major fundamental news from the US or the Eurozone to justify this drive higher but no one seemed to care. The dollar has been weakening over the last month or so but most of that has been happening during a period of low volume, as in yesterday, but for those who expected a reversal of this move, it has been more and more pain on a daily basis.
To add to the misery of the dollar bulls, so far, there has not been any sign of a reversal in the trend. The move down in the dollar seems to continue relentlessly though there has not been much in way of any fundamental drivers for this move lower. The misery for the dollar bulls has been increased due to the strength of the Euro with some strong incoming data prompting the ECB to thinking about ending the QE by the end of this year.
Looking ahead to the rest of the day, we do not have any major news from the Eurozone or the US but the US traders return back from their long weekend and so we can safely expect a lot of volatility to exist in trading today. It may also lead to a small correction in this trend higher in the EURUSD pair.