There is information in public domain that Mazen Issa, Senior FX Strategist at TD Securities, looking that the EUR/USD pair is howvering a key resistance level. He sees some connection between the current rally and the one it took place during mid-2017.
“EURUSD’s ascent may be reminding of the mid-2017 melt-up before peaking around 1.25. While some say that history doesn’t repeat itself, it sure does peom or rhyme . At that time , Euro probing was high ahead of the French elections. Macron’s victory offered another vision to the EU project, however. He further commented We may now be in a similar situation. EURUSD’s lift-off comes on the heels of the EU Recovery Fund (ERF) proposal in May. Some think this puts it one step closer to a fiscal union.”
Furthermore “EURUSD’s since the ERF has been inflexible . We are wary as the pair nears multi-year daily downtrend resistance ~1.18+. We see this as a litmus test over the durability of EURUSD’s surge, and where skewed tactical positioning and valuations (on our dashboard) begin to bite.”
Since Dollar Index and IS recession fears woes the market the eur may feel some heat as we are watching in the Gold and silver across the globe.