EUR/USD rises further on USD weakness, hits fresh highs above 1.1630

• Mixed US data offers no support to the DXT that drops further.
• EUR/USD heads for strongest weekly close since September 2018.

The EUR/USD pair broke to the upside after moving during hours in a range between 1.1625 and 1.1585 and hit 1.1637, the highest since late 2018. The greenback failed to hold onto to marginal gains and resumed the decline, boosting the pair.

The US Dollar Index (DXY) found resistance at 94.80 and turned to the downside. It recently dropped to 94.40, hitting the lowest intraday level since September 2018. Dollar’s weakness remains in place, with the currency unable to stabilize.

The key driver behind the rally in EUR/USD on Friday is basically the dollar. Despite reaching new cycle highs versus the dollar, the euro is falling against the pound and the Swiss franc, modestly.

Economic data from the US came in mixed offering no support to the greenback. While the PMI Markit rebounded further but below expectations, housing data (New Home Sales) soared in June.

Another positive week

The EUR/USD pair is consolidating strong weekly gains, more than two hundred pips. It is the fifth weekly gain in a row for the euro and the highest close since September 2018.

From a technical perspective, the key development in the weekly chart is the close above 1.1450/70. The next barrier emerges at 1.1750.

EUR/USD weekly chart