EUR/USD breaks above 1.2000 and hits 3-month highs

• EUR/USD breaks above 1.2000 on last trading hours. 
• Gains almost 15% during 2017. 
• Greenback ends year on a weak note. 

The US dollar remained weak during the last American session of the year and boosted the EUR/USD pair further to the upside. The euro rose above 1.2000 for the first time since September and climbed to 1.2019. 

As of writing, was trading near the highs, consolidating on top of 1.2000 headed toward the second highest close in three years. 

The euro is among the top currencies of the year. Against the US dollar, it gained 14.8%. Monetary policy divergence failed to boost the greenback against the common currency. Expectations that the European Central Bank would end its QE program next year helped the euro during the second half of 2017. 

Levels to watch 

During the last three days EUR/USD rose more than 150 pips and broke above November highs and today is rising on top of the 1.20 handle. If the euro holds around current levels a test of 2017 highs at 1.2090 could be seen next week; before that level, 1.2060 could offer resistance. 

So far no signals of a correction are seen but some short-term technical indicators are at extreme readings. A slide back below 1.2000 could signal some consolidation ahead before another attempt higher. The bullish tone is likely to persist as long as price holds on top of 1.1880.