- EUR/USD keeps pushing higher and trades close to 1.1450.
- Next on the upside emerges the YTD peak near 1.1500.
- The US Empire State Index surpassed expectations in July.
The bid bias around the shared currency remains well and sound on Wednesday and is now lifting EUR/USD to fresh monthly peaks around 1.1450.
EUR/USD now focused on 1.1500
EUR/USD is extending the upside momentum and is currently flirting with a Fibo level (of the 2017-2018 rally) in the mid-1.1400s, considered the last defense for a move to 2020 highs just below 1.15 the figure (March 9).
In the meantime, and as usual in past weeks, the improved sentiment in the risk complex continues to hurt the buck and provides extra legs to the pair and its risk peers. Indeed, optimism over a strong economic recovery has been boosted by rising hopes of a coronavirus vaccine, all morphing into a stronger uptrend in the risk universe.
The rally in EUR/USD is also sustained by rising open interest and volume in the futures markets, hinting at the idea that a move to yearly peaks remains well on the table in the short-term horizon.
In the US calendar, the NY Empire State index is back to the positive territory in July after printing 17,20, surpassing previous estimates at the same time. Additional data saw Export and Import Prices both rising at a monthly 1.4% in June.
Later in the NA session, Industrial/Manufacturing Production will take centre stage seconded by Capacity Utilizaztion and the publication of the Fed’s Beige Book. In addition, FOMC’s T.Harker will speak and the EIA will release its weekly report on crude inventories.
What to look for around EUR
EUR/USD is challenging multi-month peaks beyond 1.1400 the figure, always on the back of the upbeat risk appetite trends and helped at the same time by better-than-forecasted results in some key fundamentals in the region. Also supportive of a strong euro appears the solid stance of the current account in the euro area.
EUR/USD levels to watch
At the moment, the pair is gaining 0.35% at 1.1439 and a breakout of 1.1448 (50% Fibo of the 2017-2018 rally) would target 1.1495 (2020 high Mar.9) en route to 1.1514 (high Jan.31 2019). On the other hand, immediate contention is located at 1.1186 (61.8% Fibo of the 2017-2018 rally) seconded by 1.1168 (monthly low Jun.19) and finally 1.1147 (high Mar.27).
Share
