- EUR/USD trades with decent gains near the 1.1770 area.
- ECB’s Christine Lagarde speaks later at an event in Paris.
- The FOMC Minutes will be the salient release later in the NA session.
The single currency regains the smile on Wednesday and lifts EUR/USD back to the 1.1770 area, a region coincident with the immediate resistance line (off 2020 highs).
EUR/USD looks to data, ECB, FOMC
EUR/USD extends the choppy activity so far this week amidst the generalized lack of a clear direction in the global markets.
The pair’s upside lost vigour in the 1.1800 neighbourhood in the first half of the week, particularly on Tuesday after President Trump decided to halt all the debate around another stimulus package. Trump’s decision poured cold water over hopes of extra support to the US economy and to the risk complex, at the same time forcing the pair to fade the spike to multi-day highs in the 1.18 area.
Later in the session, ECB’s Lagarde will speak at the International Financial Forum in Paris. Earlier, German Industrial Production unexpectedly contracted 0.2% MoM during August.
Across the pond, the focus of attention will be on the release of the FOMC Minutes along with a slew of Fed-speakers (Barkin, Kashkari, Evans, Williams).
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 just 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 0.21% at 1.1757 and a break above 1.1807 (weekly high Oct.6) 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).
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