EUR/USD pushes higher near 1.1840 on ECB story

• The pair clinched fresh lows in the 1.1830/40 band on further USD-selling.
• German Bunds yields trade in multi-day tops around 0.50%.
• ECB taper remains the exclusive driver behind the pair’s up move.

The demand for the single currency remains robust so far this week and is now taking EUR/USD to the area of 1.1830/40, or new multi-day peaks.

EUR/USD up on ECB rumours

Spot is up since Monday and has now regained the critical resistance area at 1.1830, always backed by rising speculations that the European Central Bank could announce some tapering of the current bond-buying programme at next week’s meeting.

The greenback, instead, continues its march south and is now flirting with fresh 3-week lows in the 93.30 region, while yields of the key US 10-year reference are approaching the 3.0% level.

The story around the ECB is also echoing on the German money markets, where yields of the 10-year Bund are at shouting distance from the 0.50% barrier, fresh multi-day peaks.

In the data space, German Factory Orders contracted at a monthly 2.5% in April, more than expected. Next of relevance in Euroland will be the GDP figures in the region during the January-March period.

EUR/USD levels to watch

At the moment, the pair is gaining 0.37% at 1.1818 facing the next up barrier at 1.1838 (high May 22) followed by 1.1998 (high May 14) and finally 1.2012 (200-day sma). On the downside, a break below 1.1718 (low dec.12 2017) would target 1.1684 (10-day sma) en route to 1.1617 (low Jun.1).