- EUR/USD fades earlier gains and returns to 1.1850.
- The dollar regains ground lost following multi-day lows.
- ECB’s C.Lagarde speaks once again on Thursday.
After climbing as high as the 1.1890/95 band during early trade, EUR/USD met some selling pressure and now recedes to the 1.1860/50 band.
EUR/USD still capped by 1.1900
EUR/USD struggles to keep the positive note unchanged for the fifth session in a row so far on Wednesday after bulls once again failed to push spot further north of the 1.19 neighbourhood.
In the meantime, the vaccine front continues to deliver the big news after US pharmaceutical Pfizer (NYSE: PFE) said the final trial figures for its candidate vaccine rose to 95% efficacy, surpassing former news of a 90% efficacy.
Earlier in the euro docket, final October headline CPI contracted 0.3% and core CPI rose 0.2% from a year earlier. In the US data space, Housing Starts rose to 1.530 million units during last month while Building Permits rose by 1.545 million units.
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 0.04% at 1.1866 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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