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The hawkish commentaries from the European Central Bank (ECB) are pushing the single currency higher as the data continue to indicate a stronger economic recovery in the monetary Union. The euro is currently trading at 1.145 against the dollar, which is the highest level for the single currency since April 2016. While the initial bull side push came from the weakness of the dollar back in April this year, which got fuelled by French election win by Emmanuel Macron, the single currency is currently riding on the hawkish speculation with little influence from the dollar’s strength.
The single currency is nearing our short term target of 1.16 against the dollar and is expected to get reached over the coming months. The recent correction, followed by range trading has helped the bull cement its position as it made a formidable base around 1.112 area.
In this article, we would like to recommend further buying in euro as we expect the single currency to reach as high as 1.19 against the dollar. The stop loss should be kept around 1.11 area.
