EUR/USD eases from daily highs near 1.1760

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  • EUR/USD loses upside traction near the 1.1760 region.
  • The coronavirus pandemic, US stimulus bill remain in the spotlight.
  • Final September PMIs, ISM Manufacturing next of significance.

EUR/USD abandons the area of daily highs near 1.1760 soon after the opening bell in Euroland on Thursday.

EUR/USD looks to data, risk trends

EUR/USD fades Wednesday’s downtick to the 1.1685/80 band, not only regaining the 1.1700 barrier but also advancing to new multi-day highs near 1.1760. This area of resistance is also reinforced by the 55-day SMA, today at 1.1772.

In the meantime, rumours that another stimulus package could be finally delivered by US policymakers have been lending fresh oxygen to the risk-associated assets in past hours, eclipsing somewhat worries regarding the advance of the second wave of the coronavirus pandemic.

In the euro docket, final September’s manufacturing PMIs are due in Euroland seconded by Producer Prices in the region and the Unemployment Rate for the month of August.

Busy calendar across the Atlantic too, with usual Claims and the ISM Manufacturing on top of the docket seconded by final Markit’s PMI, Challenger Job Cuts, Personal Income/Spending and inflation figures measured by the PCE.

EUR/USD levels to watch

EUR/USD appears to have met a strong hurdle in the 1.1770 region so far, area coincident with the 55-day SMA. The pair’s outlook still remains constructive and bearish moves are deemed as corrective only. Further out, the positive bias in the euro remains underpinned by auspicious results from domestic fundamentals (which have been in turn supporting further the view of a strong economic recovery after the slump in the activity during the spring), the so far calm US-China trade front and the steady – albeit vigilant- stance from the ECB. The solid position of the EMU’s current account coupled with the favourable positioning of the speculative community also lends support to the shared currency.

EUR/USD levels to watch

At the moment, the pair is advancing 0.15% at 1.1736 and a breakout of 1.1757 (weekly high Oct.1) would target 1.1772 (55-day SMA) en route to 1.1917 (high Sep.10). On the other hand, the next support aligns at 1.1612 (monthly low Sep.25) seconded by 1.1495 (monthly high Mar.9) and finally 1.1447 (50% Fibo of the 2017-2018 rally).

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