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  • EUR/USD moves higher but falters just ahead of the 1.19 mark.
  • German/EMU ZEW survey coming up next in the euro docket.
  • US Industrial/Manufacturing Production next of relevance across the pond.

The single currency extends the upbeat mood and pushes EUR/USD to the boundaries of the 1.1900 neighbourhood, or new 3-day highs.

EUR/USD now looks to data

EUR/USD is advancing for the fifth consecutive session on Tuesday, prolonging the recovery following monthly lows near 1.1750 (September 9) and boosted by the firm note from the ECB at last week’s meeting.

In fact, investors re-shifted their attention to the risk-associated space in recent sessions, lending fresh oxygen to the pair and opening the door once again to a potential re-visit to the key 1.20 mark.

Later in the European morning, the focus of attention is expected to be on the release of the Economic Sentiment gauge tracked by the ZEW survey both in Germany and the broader Euroland for the current month.

Across the Atlantic, Industrial/Manufacturing Production will be in the centre of the debate seconded in relevance by the NY Empire State index. It is worth mentioning as well that the 2-day FOMC meeting kicks in later on Tuesday.

What to look for around EUR

EUR/USD managed to test the area just above 1.20 the figure at the beginning of the month. The move, however, lacked follow through and triggered a corrective downside that met contention near 1.1750. Looking at the broader picture, the bearish view on the dollar continues to sustain the underlying constructive bias in the pair, all accompanied by the improved sentiment in the risk-associated universe, auspicious results from domestic fundamentals – which have been in turn supporting further the view of a strong economic recovery following the coronavirus crisis – as well as a calmer US-China trade front. The solid positive stance in the speculative community also underpins the constructive outlook in the euro, while the latest message from the ECB also collaborates with the momentum in the euro.

EUR/USD levels to watch

At the moment, the pair is gaining 0.24% at 1.1892 and a breakout of 1.1965 (monthly high Aug.18) would target 1.2011 (2020 high Sep.1) en route to 1.2032 (23.6% Fibo of the 2017-2018 rally). On the flip side, immediate contention is located at 1.1752 (monthly low Sep.9) seconded by 1.1709 (38.2% Fibo of the 2017-2018 rally) and finally 1.1695 (monthly low Aug.3).