• EUR/USD extends 200-DMA breakout towards the monthly high.
  • Concerns surrounding China, Fed underpin market’s firmer sentiment.
  • Cautious optimism, softer US Dollar favor three-day winning streak.
  • Germany’s IFO Sentiment figure, ECB Monetary Policy Meeting Accounts eyed for clear directions.

EUR/USD bulls are in full mood to refresh the monthly top during the three-day uptrend, up 0.40% intraday near 1.0440 heading into Thursday’s European session. The major currency pair’s latest gains could be linked to the risk-on mood, as well as broad-based US Dollar weakness.

Market sentiment improves amid receding fears of the US Federal Reserve’s (Fed) aggressive rate hikes, especially after the previous day’s Federal Open Market Committee (FOMC) Meeting Minutes. Also likely to underpin the cautious optimism are hopes of Chinese government stimulus and a cut to the People’s Bank of China’s (PBOC) Reserve Requirement Ratio (RRR).

While portraying the mood, the S&P 500 Futures join firmer Asia-Pacific shares to print mild gains but the Treasury yields are inactive amid the Thanksgiving celebration in the US.

On the other hand, upbeat prints of the bloc’s activity numbers for November contrasted with the softer PMIs for the United States, published on Wednesday, also keep the EUR/USD buyers hopeful.

It’s worth observing, however, that the EUR/USD Risk Reversal (RR), a gauge of call options to put one, braces for the second weekly negative, suggests the bears aren’t off the table. As a result, today’s readings of German IFO sentiment numbers for November and details of the European Central Bank (ECB) Monetary Policy Meeting Accounts, will be closely observed for clear directions.

While the softer statistics from the bloc’s powerhouse may allow the EUR/USD bulls to take a breather, the recently hawkish calls from the ECB policymakers contrast with the Fed minutes and favor the expectations of witnessing further upside.

Technical analysis

A successful upside break of the 200-DMA, currently around 1.0395, directs EUR/USD buyers toward the monthly peak of 1.0481. However, nearly overbought RSI (14) may challenge the pair’s further upside.

Additional important levels

Overview
Today last price 1.044
Today Daily Change 0.0038
Today Daily Change % 0.37%
Today daily open 1.0402
 
Trends
Daily SMA20 1.013
Daily SMA50 0.9948
Daily SMA100 1.0026
Daily SMA200 1.0398
 
Levels
Previous Daily High 1.0405
Previous Daily Low 1.0296
Previous Weekly High 1.0482
Previous Weekly Low 1.0272
Previous Monthly High 1.0094
Previous Monthly Low 0.9632
Daily Fibonacci 38.2% 1.0364
Daily Fibonacci 61.8% 1.0338
Daily Pivot Point S1 1.0331
Daily Pivot Point S2 1.026
Daily Pivot Point S3 1.0222
Daily Pivot Point R1 1.044
Daily Pivot Point R2 1.0476
Daily Pivot Point R3 1.0548

 

 

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