EUR/USD pushes higher, 1.1100 around the corner

Pablo Piovano FXStreet

The single currency is extending its march north on Wednesday, pushing EUR/USD to test fresh highs in the vicinity of the 1.1100 handle.

EUR/USD now looks to PMIs, FOMC

The pair’s upside has gathered further traction on Wednesday as the selling sentiment around the greenback remains firm in response to swelling uncertainty around the US political scenario in light of the upcoming elections.

In that regard, Republican candidate and businessman D.Trump keeps the lead in some election polls vs. Democrat candidate H.Clinton, albeit by a slim margin. Other poll results are giving Clinton the lead, also by a marginal gap. All in all, the buck keeps suffering and has already retreated to 3-week lows when tracked by the US Dollar Index (DXY).

In the data space, the final prints for October manufacturing PMIs are due in Euroland, although they remain far from being a market mover.

Across the pond, the ADP report is expected to show the US private sector has added 165K jobs during last month, adding to the already solid health of the US labour market.

Later in the NA session, market participants have ruled out any move by the Fed today, although the statement is expected to lean towards the hawkish side, emphasizing the economic recovery and paving the way for a December rate hike.

EUR/USD levels to watch

The pair is now up 0.31% at 1.1089 with the next hurdle at 1.1136 (100-day sma) followed by 1.1144 (55-day sma) and then 1.1188 (200-day sma). On the other hand, a break below 1.0850 (low Oct.25) would aim for 1.0820 (low Mar.10) and finally 1.0709 (2016 low Jan.5).

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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