The bearishness around the greenback is now allowing EUR/USD to clinch daily tops in the mid-1.0700s ahead of the European open.
EUR/USD stronger on USD-selling
The selling interest in USD has nothing but intensified in response to the protectionist tone from President D.Trump’s speech at his inauguration on Friday.
In addition, Trump failed to shed more light over the potential political and economic measures to be implemented in his presidency, increasing the scepticism among investors and thus weighing further on the buck.
Spot has managed to break above the critical 1.0700 barrier on a more sustainable fashion for the time being, now targeting December highs near 1.0800 the figure ahead of the boundaries of the 1.0900 handle following the spike post-ECB meeting that month.
In the positioning space, the latest CFTC report showed EUR speculative net shorts have climbed to 2-week tops on the week to January 17.
On the data front, EMU’s Consumer Confidence gauged by the European Commission is only due later along with speeches by President Mario Draghi and Board Member Peter Praet.
EUR/USD levels to watch
The pair is now up 0.39% at 1.0745 and a breakout of 1.0755 (high Jan.23) would open the door to 1.0798 (high Dec.5) and then 1.0873 (high Dec.8). On the flip side, the immediate support aligns at 1.0622 (low Jan.19) followed by 1.0619 (short-term support line) and finally 1.0598 (55-day sma).
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