EUR/USD challenges weekly lows around 1.1800

The single currency alternates gains with losses and motivates EUR/USD to gyrate around the 1.1800 level during the European morning on Tuesday.

EUR/USD focused on risk trends

EUR/USD looks for direction amidst an unfavourable context, where investors keep favouring the demand for the safe haven universe on the back of pandemic fears and the absence of news regarding extra stimulus in the US.

In the meantime, EUR/USD looks poised to extend the consolidative mood as cautiousness among traders prevails ahead of the ECB event on Thursday. The pair’s price action remains so far underpinned by the 55-day SMA just below 1.18 the figure and with the next target of relevance on the upside at the monthly peaks around 1.1880 (October 21).

Data wise in Euroland, the ECB’s M3 Money Supply expanded 10.4% on a year to September and Private Sector Loans expanded at an annualized 3.1% during the same period.

Across the pond, the Conference Board will publish its Consumer Confidence gauge seconded by Durable Goods Orders, the House Price Index, the Richmond Fed manufacturing index and the API’s weekly report on crude oil supplies.

What to look for around EUR

EUR/USD approaches the 1.1800 mark once again amidst renewed demand for the dollar. The outlook on EUR/USD remains positive, however, and bearish moves are deemed as corrective only. Further out, the positive bias in the euro remains underpinned by auspicious results from domestic fundamentals (despite momentum appears somewhat mitigated in several regions), the so far cautious stance from the ECB and the solid position of the EMU’s current account. In addition, the probable “blue wave” following the US elections is deemed as a negative driver for the greenback and carries the potential to lend extra legs to the pair in the longer run.

EUR/USD levels to watch

At the moment, the pair is losing 0.01% at 1.1807 and faces the next support at 1.1688 (monthly low Oct.15) followed by 1.1612 (monthly low Sep.25) and finally 1.1495 (monthly high Mar.9). On the other hand, a breakout of 1.1880 (monthly high Oct.21) would target 1.1917 (high Sep.10) en route to 1.1965 (monthly high Aug.18).