EUR/USD pushes higher to 1.1820, daily highs
|- EUR/USD challenges 3-day peaks in the 1.1820/30 band.
- The dollar keeps correcting lower and supports the pair’s upside.
- EMU’s flash Q3 GDP, Balance of Trade figures next of note in the docket.
The single currency adds to Thursday’s gains and lifts EUR/USD to the area of recent peaks in the 1.1820/30 band.
EUR/USD looks to data, USD
EUR/USD is advancing for the second session in a row at the end of the week on the back of the resumption of the selling bias around the dollar.
No news on the macro front, where headlines continue to be dominated by the unabated advance of the pandemic and its impact on the global growth prospects, particularly after more and more countries re-implemented restriction measures and tighter control over the social distancing.
In the euro docket, another revision of Q3 GDP figures is due later seconded by results from the trade balance. Across the pond, Producer Prices are scheduled in the first turn followed by the flash U-Mich index for the month of November and speeches by FOMC’s Williams and Bullard.
What to look for around EUR
EUR/USD looks to break above the multi-session consolidative theme seen as of late and advances further north of 1.18 the figure. In the very near-term, however, EUR/USD is expected to remain under scrutiny on dollar dynamics mainly coming from the US post-elections scenario and the progress of the coronavirus pandemic. On the more domestic front, the euro appears propped up by auspicious results from domestic fundamentals (despite momentum appears somewhat mitigated in several regions), although the now more dovish stance from the ECB prompts some caution when comes to bullish attempts. As usual, the euro still looks supported by the solid position of the EMU’s current account.
EUR/USD levels to watch
At the moment, the pair is gaining 0.11% at 1.1816 and a break above 1.1920 (monthly high Nov.9) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1). On the other hand, the next support emerges at 1.1745 (weekly low Nov.11) followed by 1.1709 (Fibo level of the 2017-2018 rally) and finally 1.1602 (monthly low Nov.4).
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