- The pair stages a strong rebound from the 1.1300 handle
- The greenback tumbles to daily lows near 96.40
- US Philly Fed manufacturing index coming up next
After testing the 1.1300 handle on Wednesday, EUR/USD managed to regain traction and is now advancing around a cent to the vicinity of 1.1400 the figure ahead of the opening bell in Euroland.
EUR/USD up on risk-on sentiment
The pair is posting strong gains today after five sessions in the negative ground, gaining around a big figure since yesterday’s brief test of the 1.1300 neighbourhood following a pick up in the risk-on trade.
In fact, the greenback quickly dropped from the vicinity of fresh YTD peaks near the 97.00 milestone on Wednesday after news cited that Chinese vice commerce minister will visit the US in late August in order to resume trade talks. The headlines hit the buck, lent oxygen to the risk-associated space and motivated EUR bulls to return to the markets.
In the data sphere, the US Philly Fed manufacturing index will grab all the attention seconded by Building Permits, Housing Starts and the weekly report on the labour market.
EUR/USD levels to watch
At the moment, the pair is up 0.41% at 1.1393 and a breakout of 1.1476 (10-day SMA) would target 1.1579 (21-day SMA) en route to 1.1629 (high Aug.8). On the flip side, the next support emerges at 1.1301 (2018 low Aug.15) seconded by 1.1188 (61.8% Fibo of the 2017-2018 rally) and finally 1.1118 (monthly low Jun.20 2017).
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