EUR/USD trades near 3-month high ahead of German Consumer Confidence data

• EUR/USD looks to extend the recent rise from 1.1833 to 1.1930. 
• German Consumer Confidence may see bigger-than-expected drop on coronavirus concerns. 
• A weak data could put brakes on EUR/USD’s rally.

EUR/USD is trading near the three-month high of 1.1930 reached Wednesday and may chart more robust gains if critical German data beats estimates. 

Due at 07:00 GMT, the German GfK Consumer Confidence Survey for December, a leading index that measures the level of consumer confidence in economic activity, is expected to print at -5, marking a decline from October’s -3.1 reading. 

Germany is facing a second wave of coronavirus and has reimposed economically-painful lockdown restrictions. As such, the data could come in well below expectations, hinting at deeper economic slowdown and drawing offers for EUR/USD. Markets are expecting the European Central Bank to announce additional stimulus in December. 

EUR/USD will likely extend the recent move from 1.1833 to 1.1930 if the data beats estimates by a significant margin. 

The pair is already on the offensive, courtesy of the dismal US data and the dovish Federal Reserve minutes released Wednesday. Volatility will likely remain low with the US-based traders observing the Thanksgiving holiday. (edited) 

Technical levels