- EUR/USD extends the uptrend to the boundaries of 1.1900.
- The dollar remains week and sustains the upside in the pair.
- EMU’s final October CPI figures only due for release later.
The bid bias around single currency remains well and sound and pushes EUR/USD to the area of weekly peaks in the vicinity of 1.19 the figure.
EUR/USD looks to risk trends, data
EUR/USD posts gains for the fifth straight session on Wednesday, although a test/surpass of the key barrier at 1.1900 still remains elusive for EUR-bulls.
In the meantime, the pandemic continues its relentless advance across the world while countries keep implementing new and tighter restrictions that directly impact on the global growth prospects.
Against this and coupled with the imminence (?) of an effective vaccine, investors continue to support the view of a strong recovery and therefore lend extra oxygen to the risk complex.
Later in the euro docket, the final inflation figures for the month of October are due. In the US economy, housing data will take centre stage along with Fedspeak.
What to look for around EUR
EUR/USD once again looks to re-test the key up barrier in the 1.1900 neighbourhood amidst favourable risk appetite trends. In the very near-term, however, EUR/USD is expected to remain under scrutiny on dollar dynamics mainly coming from the US post-elections scenario and the progress of the coronavirus pandemic. On the more domestic front, the euro appears propped up by auspicious results from domestic fundamentals (despite momentum appears somewhat mitigated in several regions), although the now more dovish stance from the ECB prompts some caution when comes to bullish attempts. As usual, the euro still looks supported by the solid position of the EMU’s current account.
EUR/USD levels to watch
At the moment, the pair is gaining 0.17% at 1.1881 and a break above 1.1920 (monthly high Nov.9) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1). On the other hand, the next support emerges at 1.1745 (weekly low Nov.11) followed by 1.1709 (Fibo level of the 2017-2018 rally) and finally 1.1602 (monthly low Nov.4).
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