Narrowing front-end spreads and a break above 1.1625 bolster the Euro’s push toward 1.1793 resistance against the USD.
The Euro extended gains against the US Dollar, climbing toward the mid-to-upper 1.17 range as broad USD weakness and narrowing front-end spreads supported the move. A clear break above the 1.1625/50 zone reinforced bullish technical momentum, with resistance eyed near 1.1793, the 61.8% retracement of the EUR’s first-half decline.
Recent strength follows a 1.1% rise in German producer prices for July, exceeding expectations, while front-end spreads have tightened since late June. Support levels are now seen at 1.1600/25, with trend dynamics favoring further EUR upside in the short term.
The advance reflects investor reactions to US policy shifts, though the broader narrative remains tied to USD softness and improving Eurozone fundamentals.