EUR/USD: Bullish opening gap and towards 1 .1400 as Bremain favoured

The shared currency maintains a bid tone against its American counterpart at the start of a big week, with EUR/USD through the roof beyond 50-DMA located at 1.1300.

EUR/USD extends bullish opening gap

Currently, EUR/USD jumps +0.69% and hovers near fresh weekly tops reached at 1.1358 pre-Tokyo open. The main currency pair extended its Friday’s upbeat momentum and opened this week with almost 60-pips bullish gap after the Asian traders cheered weekend’s Brexit opinion polls, which showed votes shifting in favour of ‘Remain’ camp.

Among the latest polls, BMG phone poll has 'Remain' leading by over 7 points, YouGov: 43% Leave, 44% Stay, 9% Undecided, Opinium: 44% Leave, 44% Stay, Survation: 42% Leave, 45% Stay, 13% Undecided.

However, further upside remains capped on the back of cross driven weakness, with the EUR/GBP down -0.75% below 0.78 handle as the GBP bulls remain in complete control across the board amid renewed optimism surrounding the EU referendum. The UK votes on EU membership on June 23rd.

Data-wise, we have a data-light trading session today, with a second-tier data from the Euroland in the German PPI numbers ahead of the German Buba monthly report release. While for the week ahead, all eyes will remain on the EU referendum.

EUR/USD Technical Levels             

In terms of technicals, the pair finds the immediate resistance 1.1369/77 (daily R1/ Jun 3 High). A break beyond the last, doors will open for a test of 1.1400 (psychological levels). On the flip side, the immediate support is placed at 1.1300 (50-DMA) below which at 1.1266/42 (20 & 100-DMA) could be tested.