EUR/USD hits fresh 5-week highs above 1.2450

• As USD continues to slide, EUR/USD keeps rising. 
• Euro heads for the highest close since February 15. 

The EUR/USD pair continued to move higher during the US session driven by the decline of the US Dollar. It reached a fresh 5-week high at 1.2462 and it was holding near the top, up more than a hundred pips for the day. 

The euro was among the top performers of the day. Against the Swiss Franc rose above 1.1750 for the first time since mid-January. On the contrary, the greenback is down across the board, rising only against the yen. The Japanese currency weakened amid risk appetite. 

Earlier today, comments from ECB official Jens Weidmann, about the possibility of a rate hike around mid-2019 added support to the euro. While easing tensions about a trade war between US and China, weakened the greenback. US Dollar Index futures dropped below 89.00 to 88.55, the lowest levels in five weeks. In a few minutes, Fed’s Mester will be speaking about monetary policy. 

EUR/USD technical outlook 

“The pair broke above the daily descendant trend line coming from February's yearly high, 1.2554,  at the beginning of the day and stands now some 100 pips above it, which favors another leg higher, and even a retest of the mentioned yearly high on a break above 1.2480 a major static resistance level”, warns Valeria Bebnarik, Chief Analyst at FXStreet. 

The short-term picture is bullish according to readings in the 4 hours chart, affirms Bednarik, with indicators in overbought territory, but with no signs of changing course.

Immediate support now could be seen at 1.2435, followed by 1.2380/85 and the strong area around 1.2330.