- The pair advances further today and challenges tops near 1.1950.
- The greenback remains on the defensive around 92.50.
- US docket includes Export/Import Prices and the advanced U-Mich index.
The demand for the single currency keeps the firm fashion during the second half of the week and is now pushing EUR/USD to the area of recent tops in the mid-1.1900s.
EUR/USD stronger on USD-selling
Spot is up for the second session in a row on Friday following the renewed selling bias around the buck.
In fact, the US Dollar Index recently clinched fresh 2018 tops in the 93.40/45 band, which could have sparked some selling in light of the strong upside seen in past weeks.
Coupled with that, yesterday’s lower-than-expected US inflation figures has been weighing on the greenback and thus allowing the current rebound in spot.
The pair, however, faces a tough hurdle above 1.2000 the figure, where sits the critical 200-day sma.
Later in the session, President Draghi is due to speak in Florence, although his speech is not seen mentioning monetary policy. Across the pond, Export/Import Prices are next on tap, seconded by the flash gauge of the Consumer Sentiment for the current month and the speech by San Francisco Fed J.Williams (voter, centrist).
EUR/USD levels to watch
At the moment, the pair is up 0.17% at 1.1935 and a break above 1.1949 (high May 11) would target 1.2019 (200-day sma) en route to 1.2113 (21-day sma). On the flip side, immediate support aligns at 1.1823 (2018 low May 8) seconded by 1.1768 (78.6% Fibo of November-February up move) and finally 1.1718 (monthly low Dec.12 2017).
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