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  • EUR/USD pushes higher and advances to 2-week highs above 1.18.
  • The greenback sheds further ground and drops to multi-day lows.
  • Investors continue to favour the risk complex on Friday.

EUR/USD extends its march north and trades in fresh 2-week highs near 1.1820 at the end of the week.

EUR/USD stronger on USD-selling

EUR/USD seems to have left behind the multi-session consolidative mood and picks up extra pace above the 55-day SMA (1.1797). Furthermore, the pair managed to extend its advance further following the recent breakout of the immediate resistance line (off 2020 highs).

The greenback, in the meantime, loses further ground and recedes to levels last seen a couple of weeks ago around 93.20 when tracked by the US Dollar Index (DXY), always weighed down by fresh rumours of the resumption of stimulus talks in the US political scenario.

Earlier in the session, Italian Industrial Production surprised to the upside and expanded at a monthly 7.7% during August, adding to the idea of a strong rebound in that economy. Across the pond, a poor calendar will only see August’s Wholesale Inventories along with the WASDE Report and the oil rig count by Baker Hughes.

What to look for around EUR

EUR/USD appears to have met a strong barrier in the 1.1800 area so far, where converge the 55-day SMA and above the immediate resistance line. 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 cautious stance from the ECB and the solid position of the EMU’s current account.

EUR/USD levels to watch

At the moment, the pair is gaining 0.47% at 1.1813 and a break above 1.1818 (monthly high Oct.9) would target 1.1917 (high Sep.10) en route to 1.1965 (monthly high Aug.18). On the flip side, the pair faces immediate contention at 1.1709 (38.2% Fibo of the 2017-2018 rally) seconded by 1.1612 (monthly low Sep.25) and finally 1.1495 (monthly high Mar.9).