After hitting fresh tops near 1.1820 in early trade, EUR/USD has now receded to the 1.1800 neighbourhood ahead of the opening bell in Euroland.
EUR/USD looks to yields, US data
The pair is looking to extend yesterday’s advance following another test of the support area around 1.1730, although the bullish attempt appears to have run out of legs in the 1.1810.20 band for the time being.
On the USD-side, the greenback’s positive streak came to a halt on Wednesday, with the US Dollar Index failing to extend the up move to levels closer to the critical 94.00 handle.
Yield spread differentials between US and Germany continue to drive the pair’s price action for the time being, while expectations of some kind of QE-related announcement by the ECB at its meeting next week are also playing their role in the sentiment around EUR.
In the data space, nothing noteworthy in the euro area, whereas the Philly Fed manufacturing index will be the salient event later in the NA session along with the speech by KC Fed E.George (2019 voter, hawkish).
EUR/USD levels to watch
At the moment, the pair is up 0.14% at 1.1803 and a breakout of 1.1840 (55-day sma) would target 1.1882 (high Oct.12) en route to 1.1911 (high Aug.2). On the other hand the initial support emerges at 1.1730 (low Oct.18) seconded by 1.1686 (low Oct.6) and finally 1.1662 (low Aug.17).
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