EUR/USD breaks higher and hits two-year highs above 1.1830

• EUR/USD rises to news cycle highs as the US dollar resumes slide.
• DXY drops to 93.00, reaching fresh two-year lows.

The EUR/USD rose back above 1.1800, and it kept running. It rose above 1.1830, reaching the highest level since June 2018, supported by a weaker US dollar across the board.

The greenback remains under pressure and after a brief recovery, it turned again to the downside. The DXY is falling by 0.40%, slightly above 93.00, at fresh multi-year lows.

The USD sell-off continues across the board. No matter what the Federal Reserve or the data points to, the sentiment continues to be against the US dollar. The rise in US Jobless Claims did not help the greenback, neither the Q2 GDP report showing a 32.9% contraction.

Lower US yields also contribute to the broad-based weakness of the greenback. It is rising modestly versus commodity and emerging market currencies but it trimmed gains during the American session as Wall Street indexes moved off lows.

Technical levels

The EUR/SUD is trading at the new high at 1.1835. The next resistance might be located at 1.1850 (June 2018 high) and above at 1.1880. On the flip side, now the 1.1800/05 area is the immediate support, followed by 1.1775.

The euro has risen in thirteen out of the last fifteen trading days versus the US dollar. From a week ago, it gained almost three hundred pips. Despite technical readings showing overbought readings, the pair kept rising, and so far, no signs of a correction are seen and it appears to be accelerating the move higher.