EUR/USD climbs back above 1.2200 for the first time since April 2018
Fresh highs for the euro as the dollar crumbles across the board in light of French, German PMI beats in the past 20 minutes; breathing more life into the risk-on rally.
The DAX is breaking to its highest levels since February as US futures are also push higher on the session now and the mood is pinning the greenback lower.
GBP/USD is also back above 1.3500 and looking to keep a firm break above the figure level as well as its 1 September high of 1.3482.
Elsewhere, AUD/USD is contesting short-term resistance at 0.7572-78 while USD/JPY is nearing a test of its early November lows around 103.35 currently.
Going back to EUR/USD, the technical picture shows little in the way of the pair moving towards a test of 1.2500 and that has been the same argument made upon a break of 1.2000. The caveat today though may be the Fed, so be just be mindful of that.
In the next week or so though, there's also year-end rebalancing and positioning adjustment to consider. So, not everything may be captured in the charts for now at least.
But in the context of the bigger picture, what's really stopping the move here?
The market has given a clear indication of what it wants to see since the break higher to start the month and unless the market landscape changes drastically, it is hard to imagine 2021 being anything too different - at least to start things off with.
