EUR/USD Breaks Resistance Band as Dollar Weakness Continues

The EUR/USD currency pair has been trading at 1.15403 after clearing the resistance band of 1.1516 to 1.1535 during a correction in its medium-term downtrend.

This move above the resistance band was driven by dollar weakness following Friday's US employment report, rather than any repricing of the euro.

The structural problem for EUR/USD is that the trade that normally moves it has stopped working due to the lack of divergence between the Federal Reserve and European Central Bank (ECB) policies.

The ECB raised its three key rates by 25 basis points on June 11, while the Fed held its target range at 3.50%-3.75% and signalled a likely hike in September.