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EUR/USD rises to fresh 4-month highs near 1.1160

The shared currency picked-up significant strength versus its American counterpart in the last hours, with EUR/USD now hovering near multi-month highs above 1.1150.

EUR/USD takes-out Wednesday’s highs and beyond

Currently, EUR/USD trades 0.44% higher at 1.1153, having printed fresh four-month highs at 1.1162 last minutes. The latest upsurge seen in the EUR/USD pair, was triggered by ECB’s Chief Draghi’s pledge to fight inflation, as he spoke at the Deutsche Bundesbank’s Marjolin Lecture, in Frankfurt.

Further, the EUR/USD pair completely ignored the risk-on rally in the European stocks and strengthened further as the US dollar halted its correction and resumed its broad based sell-off ahead of the US data releases, including the jobless claims and factory orders, which are likely to disappoint markets.

EUR/USD Technical Levels

In terms of technicals, the pair finds the immediate resistance is seen at 1.1192/1.1200 (daily R1/ round number). A break beyond the last, doors will open for a test of 1.1250 (psychological levels). On the flip side, the immediate support is placed at 1.1088/74 (1h 20-SMA/ 5-DMA) below which 1.1027 (200-DMA) could be tested.

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