EUR/USD clears 1.1400 barrier, jumps to fresh 4-week high

A fresh bout of US Dollar selling pressure provided the required boost for the EUR/USD pair to break through its recent trading range and move back above 1.1400 handle for the first time since May 12.

Risk-on rally across various asset classes (like oil, gold and equities) continues dragging the greenback lower and thus, assisting the EUR/USD pair to extend its bullish momentum through the US opening session. 

With an empty docket from the US, traders would eye the official EIA report on US oil stockpile and is expected to show a drawdown of 3.2 million barrels in the previous week. A sharply lower inventories data would further boost the risk-on sentiment and continue driving the pair higher. 

However, given the scheduled event risk of the much awaited FOMC meeting on June 14-15, a major chunk of investors are likely to remain on the sidelines.

Technical levels to watch

From current levels, the pair seems to extend the bullish momentum immediate towards 1.1430 (May 12 high) ahead of 1.1447 (May 11 high). On a clear strength above these immediate resistance levels, the pair could be aiming towards May 5-6 highs resistance near 1.1480-1.1495 region.

On the flip side, day's through level near 1.1355-50 area now seems to act as immediate support. Failure to hold this support and a subsequent weakness below 50-day SMA support near 1.1325-20 region, seems to trigger a profit-taking move towards 20-day SMA support near 1.1245-40 region.