EUR/USD move further north of 1.1700, fresh tops

  • Spot regained the 1.1700 hand and above.
  • Auspicious ZEW results support the up move.
  • USD remains on the defensive.

The selling bias around the greenback is now allowing EUR/USD to advance to the 1.1720/25 band, or daily highs.

EUR/USD in 3-week tops

The pair moved higher on Tuesday following the persistent selling pressure around the greenback, which forced the US Dollar Index (DXY) to visit the area of session lows around 94.40.

EUR stays supported as well by the auspicious results from the ZEW survey, which saw EMU’s economic sentiment ticking higher to 30.9, while economic sentiment in Germany missed consensus at 18.7 for the current month.

Further data in the euro area saw preliminary GDP figures expecting the euro zone to expand at an annualized 2.5% in the July-September period and 0.6% inter-quarter, both prints coming in in line with forecasts.

Still around EUR, President M.Draghi defended the implementation of forward guidance at today’s ECB policy panel.

On the US data space, St. Louis Fed J.Bullard (2019 voter, centrist) and Atlanta Fed R.Bostic (2018 voter, centrist) are due to speak later in the NA session, along with October producer prices.

EUR/USD levels to watch

At the moment, the pair is up 0.42% at 1.1716 and a breakout of 1.1725 (high Nov.14) would open the door to 1.1732 (100-day sma) and then 1.1796 (55-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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