EUR/USD touches new 6-month highs above 1.1150

The EUR/USD pair's relentless rise continues during the NA session, with the pair reaching its highest level at 1.1156 since the spike seen on November 9, when Trump won the presidential elections in the U.S. As of writing, the pair is trading at 1.1153, up 70 pips, or 0.63% on the day.

The pair gained more than 200 pips since the start of the week amid an everlasting greenback sell-off, which pushed the US Dollar Index to its 6-month low at 97.40 on Wednesday. Following the dismal data releases from the Unites Stated on Monday and Tuesday, the greenback faced further selling pressure on Wednesday as the political turmoil surrounding President Trump brought a wave of risk aversion, forcing the investors to seek refuge in safer Treasuries, weighing on the bond yields and hurting the greenback. As of writing, the index was at 97.41, down 0.7% on the day.

• US Rep. Al Green: The President must be impeached
• U.S. Senate Committee inquired WH to provide transcripts, memos and recordings of Trump-Obama conversations with Comey
• U.S. Treasury yields fall amid flight to safety

The weak market sentiment is also reflected upon the equity indexes in the U.S., with the Dow Jones Industrial Average losing 1.5% and the S&P 500 Index dropping 1.4% at the moment. The only relevant data featured in tomorrow's economic calendar will be the ECB monetary policy meeting accounts ahead of the weekly jobless claims from the U.S. However, the markets are likely to continue to look to the political developments in the U.S. for catalysts.

Technical outlook

1.1200 (psychological level/Oct. 9 high) could be seen as the first target for the pair ahead of 1.1280 (Sept. 26 high) and 1.1300 (psychological level/Nov. 9 high). To the downside, with a break below 1.1100 (psychological level), the correction could continue towards 1.1015 (May 7 high) and 1.0940 (200-DMA).

• What does this "Trump news" mean for US markets? - Nomura