EUR/USD edging higher, around 1.1670 ahead of ZEW

  • Spot trading around the H&S ‘neckline’ near 1.1670.
  • ZEW survey next on tap.
  • Focus also on CB-speakers.

The single currency is posting marginal gains on Tuesday against the backdrop of a steady greenback, taking EUR/USD to the 1.1670/75 area for the time being.

EUR/USD attention to data, CB-speakers

The pair is extending the positive streak for the fifth session in a row today, moving higher albeit at a glacial pace and still looking for a catalyst to challenge and break above the critical 1.1660/70 band, ‘neckline’ of the H&S pattern which was breached in late October.

On the USD-side, the lack of direction prevails around the buck, while the ‘Trumpflation’ trade seems to keep running out of steam. In addition, yields of the US 10-year reference lost momentum after climbing as high as the 2.41% area at the beginning of the week.

In the data space, final CPI figures for the month of October in the euro bloc are next on tap seconded by the German ZEW survey. In addition, ECB’s board members B.Coeure, S.Lautenschlaeger and D.Nouy are due to speak.

However, the more interesting event appears to be the policy panel at the conference ‘Communication challenges for policy effectiveness, accountability and reputation’, organized by the ECB in Frankfurt and with J.Yellen, H.Kuroda, M.Carney and M.Draghi.

EUR/USD levels to watch

At the moment, the pair is up 0.01% at 1.1668 and a breakout of 1.1685 (21-day sma) would open the door to 1.1692 (high Nov.3) and then 1.1732 (100-day sma). On the flip side, the next support emerges at 1.1631 (10-day sma) seconded by 1.1555 (low Nov.7) and finally 1.1448 (high Jun.30). Furthermore, FXStreet’s Technical Confluences Indicator (TCI) is noting an important support zone in the mid-1.1600s, where sit Bollinger Bands and a couple of Fibo retracements.

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