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  • The pair returns to the 1.1380 area after approaching 1.1400
  • The greenback extends the recovery to the boundaries of 96.70.
  • US Philly Fed index next of relevance later in the NA session.

The upbeat tone around the European currency remains in place in the second half of the week, prompting EUR/USD to test the proximity of 1.1400 although losing some ground afterwards.

EUR/USD looks to US data

The pair is adding to yesterday’s small gains following the doji-like candle amidst the renewed selling bias around the greenback and the prevailing sentiment towards the risk-associated universe.

The upcoming visit of Chinese delegates to the US later in the month in order to re-ignite trade talks have spurred a wave of optimism in the riskier assets and forced the buck to fade part of the recent robust advance, allowing the ongoing bounce in spot from fresh 13-month lows in the 1.1300 neighbourhood.

Later in the NA session, the Philly Fed manufacturing index will be published along with weekly Initial Claims and housing sector figures.

EUR/USD levels to watch

At the moment, the pair is up 0.26% at 1.1377 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).