EUR/USD approaches 1.1450, fresh session peaks
|- The pair picks up extra pace and tests 1.1450.
- The greenback drops further, eyes 95.80.
- EMU’s Retail Sales up 0.6% MoM in November.
EUR/USD keeps its march north unabated at the beginning of the week and is now flirting with fresh daily highs in the mid-1.1400s.
EUR/USD bolstered by sentiment, data
The continuation of the up move in spot continues to be propped up by the selling bias around the greenback, which is navigating fresh lows in the 95.90/85 band when tracked by the US Dollar Index (DXY).
In addition, positive releases from Euroland are also sustaining the upbeat sentiment in the pair. In fact, Retail Sales in the euro bloc expanded at a monthly 0.6% in November, while the Sentix index dropped to -1.5 for the current month, although bettering expectations.
Looking ahead, US ISM Non-manufacturing is due along with November’s Factory Orders.
What to looks for around EUR/USD
The US-China trade dispute continues to be the ‘hot-potato’ issue so far, although recent poor results from the Chinese economy could push Beijing to clinch some deal in the near term. On the other hand, market participants continue to gauge the possibility of a ‘no-hike’ by the Fed this year in spite of the solid health of the US economy. Furthermore, the partial US shutdown continues to have little (if any) impact on markets, although sentiment could be dented if the situation extends further. Regarding speculative positioning, EUR net shorts retreated to 4-week lows during the week ended on December 18, according to the latest CFTC report.
EUR/USD levels to watch
At the moment, the pair is gaining 0.40% at 1.1439 facing the next resistance at 1.1478 (100-day SMA) followed by 1.1497 (high Jan.2) and finally 1.1502 (high Nov.7 2018). On the downside, a break below 1.1309 (2019 low Jan.2) would target 1.1268 (monthly low Dec.14 2018) en route to 1.1214 (2018 low Nov.12).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.