- The pair gains extra ground and tests highs around 1.1360.
- The greenback intensifies the daily leg lower to 96.70.
- Brexit headlines stay behind the up move in the riskier assets.
The renewed and moderate selling bias around the greenback is helping EUR/USD to extend the rebound from yesterday’s lows in the 1.1300 region.
EUR/USD up on Brexit optimism, looks to data
After three consecutive daily pullbacks, the pair has regained some buying interest and is now flirting with daily highs in the 1.1360 zone.
Auspicious headlines around Brexit gave the risk-associated universe a much-needed lift, motivating spot to bounce off multi-week lows in the 1.1300 neighbourhood to the current 1.1350/60 band.
In fact, UK’s D.Raab said on Wednesday that a Brexit deal could be clinched by 21st November, while news that PM May could have reached a deal on financial services with the EU also added to the upbeat sentiment.
Looking ahead, the Bank of England event will be the salient event later in the Old Continent, whereas the critical ISM Manufacturing will grab all the attention across the pond along with the usual report on the US labour market.
EUR/USD levels to watch
At the moment, the pair is up 0.40% at 1.1357 facing the next hurdle at 1.1401 (10-day SMA) seconded by 1.1467 (21-day SMA) and finally 1.1550 (high Oct.22). On the other hand, a break below 1.1302 (low Oct.31) would target 1.1299 (2018 low Aug.15) en route to 1.1118 (monthly low Jun.20 2017).
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