Euro Breaking Through Resistance levels And Dollar Near Its Lowest Level in Two And a Half Years

Today, Friday, the euro is heading towards recording its best weekly performance in a month and breaching large previous resistance levels as investors flock to bet that the US dollar will decline further as the world begins emerging from the Covid-19 pandemic.

And the single European currency is up 1.5% since the beginning of the week and settled in recent trading at $1.2145.

And after it had already breached the $1.2000 level after several attempts, the cash-in increased momentum in the currency’s credit centres. The next important level of resistance is not earlier than $ 1.2555.

The euro is also on track to record its best week against the Japanese yen in six months, although the yen rose slightly against the generally weak dollar on Thursday.

The yen stabilized against the dollar today, and the British pound consolidated near the peak of a year and the rest of the major currencies fell slightly, while Asian currencies advanced.

Against a basket of currencies, the dollar fell about 12% from its three-year high of 102.990 in March, to reach its lowest level in two and a half years at 90.504 on Thursday and remains near that level on Friday.

The Chinese yuan, a tool with increasing investor appetite for betting on the dollar’s decline, hit a 29-month high of 6.5358 per dollar.

The South Korean won rose 0.7% to its highest level since mid-2018.

The Australian and New Zealand dollars fell slightly after reaching their highest levels in more than two years on Thursday. The Australian dollar fell in the last trading 0.2% to $ 0.7427, and the New Zealand dollar fell by the same percentage to $ 0.7061.

Both currencies are on track to gain for the fifth week in a row.