EUR/USD prints fresh 4-month tops near 1.2050, eyes 2017 tops

• DXY in a sea of red.
• Headed to 2017 highs of 1.2092.
• Eurozone manufacturing PMI confirms solid expansion.

The EUR/USD pair extends its relentless rise into Europe, now printing fresh four-month highs just ahead of the midpoint of 1.20 handle, as markets cheer solid growth seen in the Euro area manufacturing sector.

EUR/USD: Bulls in control

The main currency pair remains strongly bid amid a generalized selling seen in the US dollar, which emerged the main theme towards the end of 2017. The USD index accelerates its decline to hit fresh four-month lows of 91.63, losing sight of the 92 handle.

The spot extends its winning streak into a fourth day today, as the in-line with expectations German and Eurozone final manufacturing PMI readings suggest the 19-nation bloc’s growth prospects remain solid heading into 2018.

Later today, amid unabated broad-based US dollar selling, the pair could test 2017 highs of 1.2092, as attention turns towards the US final manufacturing PMI report due on the cards in the NA session.

EUR/USD Technical Levels

Haresh Menghani, Analyst at FXStreet noted: “From a technical perspective, the pair could be in the process of forming a bearish reversal - 'Rising Wedge' chart pattern on the daily chart and is currently placed closer to the pattern resistance near the 1.2030-35 region. A convincing break through the mentioned hurdle would negate the bearish formation and help the pair to build on its near-term bullish momentum towards 1.2070-90 supply zone. Alternatively, a reversal from current resistance area and a subsequent drop below the 1.20 handle is likely to trigger a corrective slide towards mid-1.1900s before the pair eventually breaks below the 1.1900 round figure mark and test its next support near the 1.1875-70 region.”