EUR/USD gains momentum and breaks above 1.1200

The euro gained momentum across the board during the American session. EUR/USD rose above 1.1200 and peaked at 1.1205, the highest level since Monday. 

Price so far is holding on top of 1.1200, keeping a strong bullish tone. The pair is having the best performance in weeks so far. It is up around 50 pips. Currently, it trades at 1.1200, near the level it closed last week.  

Another factor that is boosting the pair is a modest decline of the US dollar, after two economic reports from the US (PMI and new home sales) showed lower-than-expected numbers. 

US Dollar toying with session lows around 97.00

Technical outlook 

The technical bias point to the upside and currently is attempting to consolidate above the 1.1200 psychological area. According to Valeria Bednarik, Chief Analyst at FXStreet the euro needs to extend beyond 1.1220 to be able to gain bullish traction, and close the week with a positive tone.

In the short-term, to the upside, the level to watch is the mentioned 1.1220 and above the next resistance might be seen at 1.1250/55. While to the downside, supports are seen at 1.1175 (Jun 22 high) and 1.1150 (uptrend line from Jun 20 low).