Euro Gains Strength as US Treasury Doubles Debt Buyback Operations
The euro has seen steady gains against the US dollar today, increasing by 0.7% to trade at $1.1658. The EUR/USD pair is currently positioned above its key moving averages, confirming ongoing upside momentum.
This shift in USD liquidity dynamics has been driven primarily by the US Treasury's decision to double the size of its longer-dated debt buyback operations. This move increases demand for Treasuries and temporarily reduces circulating USD supply, softening the Dollar and directly underpinning Euro strength.
On the technical front, EUR/USD is trading above the MA-20 and MA-50 on the H1 chart and remains above the MA-200 on the daily timeframe. The Ichimoku Kijun level at $1.1623 acts as immediate support, while momentum indicators such as MACD and ADX readings remain strongly bullish.
The EUR/USD is expected to consolidate within a range of $1.16 to $1.1716 over the next 2-3 trading days, with a very high probability (over 80%) of an upward move in the next session. A break above $1.1716 could signal further upside momentum, while a drop below immediate support at $1.1623 may pave the way for further downside.