EUR/USD moves to session tops near 1.1360

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.

Pablo Piovano FXStreet

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 21^st 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).

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.