EUR/USD looks flat around 1.1870 ahead of data

EUR/USD alternates gains with losses around 1.1870.
Daily support emerges in the mid-1.1800s so far.
EC’s Consumer Confidence comes up next in the docket.

Pablo Piovano FXStreet

EUR/USD keeps the daily range unchanged and trades around the 1.1870 area ahead of EMU’s data.

EUR/USD stays capped by 1.1900

EUR/USD keeps the consolidative mood unaltered for yet another session on Friday, although it manages well to close the week with positive figures despite lacking the vigour to re-visit/surpass the 1.19 mark.

Investors’ attention, in the meantime, remains on the evolution of the coronavirus pandemic and restriction measures put in place by an increasing number of countries in order to curb the uptrend in infected cases. The impact on the economy, however, appears somewhat watered down by rising hopes of an effective vaccine in the not-so-distant future.

In addition, the single currency closely follows the political front in Europe in response to the planned vetoes from Hungary and Poland to the EU Recovery Fund. The debate of this issue promises fireworks around the euro and could somehow undermine a serious bull run in spot.

In the euro docket, the European Commission’s November advanced gauge of the Consumer Confidence is due later.

What to look for around EUR

EUR/USD once again failed to retest - let alone surpass - the 1.1900 level despite the favourable context in the current week. In the very near-term, however, EUR/USD is expected to remain under scrutiny on the back of the impact of the pandemic on the region’s economy and developments around the Recovery Fund. In addition, the dovish stance from the ECB and the potential announcements of extra stimulus in December also cap potential gains in the pair.

EUR/USD levels to watch

At the moment, the pair is losing 0.03% at 1.1869 and faces the next support at 1.1745 (weekly low Nov.11) followed by 1.1709 (Fibo level of the 2017-2018 rally) and finally 1.1602 (monthly low Nov.4). On the upside, a break above 1.1920 (monthly high Nov.9) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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