EUR/USD has been advancing above 1.19 amid vaccine and political optimism. Wednesday’s 4-hour chart is pointing to the 1.1920 critical resistance as bulls look strong. What’s more, the calendar comeback is in full swing, with data having the upper hand, FXStreet’s Analyst Yohay Elam briefs.
Key quotes
“A significant bulk of figures awaits traders at 13:30 GMT. Economists expect third-quarter Gross Domestic Product to be confirmed at 33.1% annualized, a substantial rebound after the crash in the second quarter. Durable Goods Orders statistics for October provide a peek into fourth-quarter GDP. Investment growth is forecast to have moderated last month. Weekly Unemployment Claims are watched more closely after a jump last time. Both initial applications and continuing ones are set to decline.”
“The Federal Reserve’s meeting minutes from early in the month may reveal how close the Fed is to ramp up its bond-buying scheme. Any hint of action in December could weigh on the dollar.”
“Back in the old continent, investors are encouraged by France’s gradual reopening and concerned that Germany may tighten restrictions. Chancellor Angela Merkel is set to debate new measures with regional leaders. If they opt for a severe lockdown, the euro could struggle.”
“Euro/dollar is eyeing the 1.1920 level. Momentum on the 4-hour chart is to the upside, the pair is trading above the 50, 100 and 200 Simple Moving Averages and the Relative Strength Index is shying away from the 70 level – thus outside overbought conditions.
“Above 1.1920, the next level to watch is 1.1960, which played a role in September. The yearly high of 1.2010 is next. Support awaits at 1.1895, which capped euro/dollar earlier this month, followed by 1.1850, a support line seen last week.”
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