EUR/USD jumps to session tops, beyond mid-1.1200s amid notable USD supply
- EUR/USD once again showed some resilience below the 1.1200 mark and staged a goodish rebound.
- Positive news about COVID-19 vaccine led to some aggressive USD selling and remained supportive.
- Bulls need to wait for some strong follow-through buying before positioning for any further move up.
The EUR/USD pair rallied around 80 pips from daily swing lows and refreshed daily tops, around the 1.1265 region in the last hour.
The pair continued showing resilience below the 1.1200 round-figure mark and once again managed to attract some dip-buying amid the emergence of fresh selling around the US dollar. The positive headlines related to the development of a vaccine for COVID-19 boosted the global risk sentiment and undermined traditional safe-haven currencies, including the greenback.
According to STAT News, Biopharmaceutical New Technologies (BioNTech) announced on Wednesday that the COVID-19 vaccine that they co-developed with Pfizer triggered a strong immune response in the early stage of human trials. This, in turn, helped ease concerns about a surge in new coronavirus cases globally, instead revived hopes of a sharp V-shaped economic recovery.
The USD bulls seemed rather unimpressed following the release of stronger-than-expected US ISM Manufacturing PMI. In fact, the gauge jumped back into the expansion territory and came in at 52.6 for June as compared to consensus estimates pointing a rise to 49.5 from 43.1 previous.
Despite the strong intraday bounce, the EUR/USD pair remains well within a familiar trading range held over the past one week or so. This makes it prudent to wait for some strong follow-through buying before positioning for any further near-term appreciating move beyond the 1.1300 round-figure mark.
Moving ahead, market participants now look forward to the minutes of the latest FOMC monetary policy meeting. The minutes might influence the USD price dynamics and produce some meaningful trading opportunities ahead of Thursday's release of the closely watched US monthly jobs report (NFP).
Technical level to watch