EUR/USD: eyes on 1.0875 the December high and top of cloud

Currently, EUR/USD is trading at 1.0791, up 0.91% on the day, having posted a daily high at 1.0813 and low at 1.0685.

EUR/USD rallied on the back of the dollar sell-off that ensued when Trump started talking down the dollar in respect to his opinion of currency manipulation by the Chinese and Japan. The boJ was meeting these last few days and this will have rustled their feathers, that is for sure, so stay tuned on the Yen that has appreciated today so far by 0.83% at time of writing, but in a move that dropped to 112.07 vs the greenback. 

The euro has rallied to the 1.08 handle for the first time since early December, and besides all of the political unrest since Trump started his presidency of the US, there are potentially far greater concerns coming back to the surface which throws the US economy and US dollar back into jeopardy and that is the nation's debt and question as to how infrastructure spending is going to resolve anything longer term? 

Markets - Get ready for a surprise!

Meanwhile we will have the Fed tomorrow of which Valeria Bednarik offers a preview here. "It is not big news that the FED has flipped from "data-dependent" to "Trump-dependent". "

EUR/USD levels

Analysts at Commerzbank said that currently they remain unable to rule out a move to 1.0820/26 50% retracement and the top of the cloud and 1.0875 the December high, although said this is looking less likely. "This will make little impact on the overall bearish chart. Below 1.0340 will target parity and the 78.6% retracement at 0.9900 of the move 2000 to 2008."