The euro gained across the board today, as euro zone banks bring back assets held abroad due to year end and repatriate funds to strengthen their capital base ahead of an ECB asset quality review. In addition comments made by ECB president Draghi, published in newspapers, that he sees no urgent need to cut euro zone’s main interest rate boosted the common currency. Eur/usd rose to 1.3810 resistance, gaining 0.40% on the day,as did eur/jpy, while eur/gbp gained 0.30%. Usd/jpy peaked to 105.40, the highest level since late 2008 before giving back some gains to 105.00.
Trade Idea
EURUSD Daily chart
The pair is trading at important resistance at 1.3810 area. It needs a break and close above this level on the daily chart to accelerate gains, otherwise the ascending trendline may come under threat.
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