EUR/USD rises above 1.19 on buoyant risk appetite

• EUR/USD ekes out gains as dollar remains on the offer. 
• Risk remains bid on easing of US political uncertainty. 
• Volatilty may rise later Wednesday with the release of crucial US economic data. 

EUR/USD trades above 1.19, as coronavirus vaccine optimism and easing US political uncertainty keeps risk assets better bid and the safe-haven dollar under pressure. 

On Tuesday, President Trump said that his aides would cooperate with President-elect Joe Biden’s transition to the White House. That eased concerns of prolonged economic uncertainty in the US, bolstering the risk sentiment, which strengthened earlier this month after drugmakers Pfizer and Moderna announced their experimental vaccines’ positive results. 

The US stocks rallied, and the Dow Jones Industrial Average topped the 30,000 level for the first time on record. The risk-on has been carried forward to Wednesday. The futures tied to the S&P 500 are currently up 0.3%, and the major Asian indices are flashing green following overnight gains on Wall Street. 

As such, the dollar is extending losses overnight losses. EUR/USD jumped from 1.1833 to 1.1896 on Tuesday and is currently hovering near 1.1907, representing a 0.14% gain on the day. 

With the Eurozone data calendar light on Wednesday, the pair remains at the mercy of the broader market sentiment during the European trading hours. 

Later, the focus would shift to several US economic reports scheduled for release on Wednesday, including revisions to third-quarter Gross Domestic Product, Personal Income, Personal Spending, New Home Sales, and Durable Goods. A big beat on expectations may draw bids for the dollar, capping the upside in EUR/USD. 

From a technical analysis standpoint, the Nov. 9 high of 1.1920 is the level to beat for the bulls. 

Technical levels