- EUR/USD remains bid in the 1.19 area on Tuesday.
- The dollar debilitates to the 92.50 region, new 2020 lows.
- US housing data next of relevance in the calendar.
The buying bias surrounding the European currency remains well in place for yet another session and it has lifted EUR/USD to fresh weekly tops in levels past 1.19 the figure on Tuesday.
EUR/USD propped up by USD-selling
EUR/USD is advancing for the sixth consecutive session on turnaround Tuesday, extending the bounce off last week’s lows in the 1.1700 neighbourhood, and always sustained by the underlying constructive stance surrounding the pair.
Other than the persistent sell-off in the buck, the single currency finds extra sustain in the solid appetite for riskier assets on the back of firm hopes over a moderate economic recovery in the region, which are in turn bolstered by news that a coronavirus vaccine could be out sooner than expected (year-end maybe?).
Nothing scheduled data wise in the region, whereas Housing Starts, Building Permits and the speech by FOMC’s L.Brainard are all due across the pond later in the NA session.
What to look for around EUR
EUR/USD pushed higher and reclaimed the 1.19 mark during early trade, therefore opening the door to a potential re-visit to the YTD peaks in the vicinity of 1.1920. The July-August rally, while largely triggered by broad-based dollar-selling and improved sentiment in the risk-associated universe, found extra sustain in auspicious results from domestic fundamentals, which have been in turn supporting further the view of a strong economic recovery following the coronavirus crisis. Also lending wings to the momentum around the euro appear the deal on the European Recovery Fund – which helped putting political fears within the bloc to rest (for now) – and the solid position of the current account in the region.
EUR/USD levels to watch
At the moment, the pair is gaining 0.31% at 1.1906 and a breakout of 1.1916 (2020 high Aug.6) would target 1.1996 (high May 14 2018) en route to 1.2032 (23.6% Fibo of the 2017-2018 rally). On the flip side, initial contention is seen at 1.1695 (monthly low Aug.3) followed by 1.1495 (monthly high Mar.9) and finally 1.1448 (50% Fibo of the 2017-2018 rally).
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