EUR/USD treading water around 1.1800
|- Upside limited around 1.1860.
- USD managed to bounce off daily lows.
- US data came in above expectations.
The buying interest around the European currency stays well and sound at the end of the week, with EUR/USD now gravitating around the 1.1800 area.
EUR/USD weekly upside capped near 1.1860
After clinching fresh 5-week tops in the 1.1860 area earlier in the week, the pair is now looking to stabilize in the upper end of the range and always against the backdrop of a persistent selling mood around the buck.
In fact, yields of the US 10-year reference are currently testing session lows in sub-2.35% levels, forcing the US Dollar Index to fade the earlier bullish attempt to the vicinity of the 93.90 area.
Earlier in the session, President M.Draghi and BuBa’s J.Weidmann coincided that inflation pressures in the euro region still remain depressed, leaving the case for a continuation of the accommodative monetary stance by the central bank intact.
In the data space, EMU’s current account surplus rose at a seasonally adjusted €37.8 billion during September, surpassing previous estimates and up from August’s €34.5 billion surplus.
EUR/USD levels to watch
At the moment, the pair is gaining 0.25% at 1.1799 and a breakout of 1.1822 (high Nov.17) would target 1.1860 (high Nov.15) en route to 1.1882 (high Oct.12). On the downside, the next down barrier aligns at 1.1745 (100-day sma) seconded by 1.1690 (21-day sma) and finally 1.1554 (low Nov.7). In addition, FXStreet’s Technical Confluences Indicator (TCI) is noting an important support zone in the 1.1760 area, where sit a pivot point, an hourly low and a monthly Fibo retracement.
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