EUR/USD pushes higher above 1.09, new weekly highs

EUR/USD advances to weekly highs beyond 1.09 the figure.
Increasing concerns around the COVID-19 keep weighing on markets.
EMU confidence gauges, US Q4 GDP figures next on the docket.

Pablo Piovano FXStreet

The single currency is extending the upbeat momentum so far this week and is now sending EUR/USD to the upper end of the range above 1.09 the figure.

EUR/USD focused on coronavirus, data

EUR/USD is prolonging the rebound from last week’s 2020 lows in the 1.0780/75 band (February 20^th) and it has retaken the 1.09 barrier against the backdrop of rising coronavirus fears and the leg lower in the dollar.

In fact, concerns around the COVID-19 remain on the rise and keep fuelling the demand for the safe havens, depressing stock markets and forcing US yields to drop to record lows. Additionally, investors appear to have started to price in further easing by the Fed in the next months, which is also weighing on the buck.

In the euro docket, Spanish flash inflation figures for the month of February are due seconded by several confidence/sentiment gauges in the euro area. Across the pond, the focus of attention will be on another revision of the Q4 GDP annualized, January’s Durable Goods Orders, weekly Initial Claims and Pending Home Sales.

What to look for around EUR

EUR/USD keeps the bid bias unchanged so far this week on the back of upbeat data in Germany and fresh selling impetus around the buck. As usual, USD-dynamics are seen dictating the pair’s price action for the time being along with the broader risk appetite trends, where the COVID-19 remains in centre stage. On another front, the ECB is expected to finish its “strategic review” (announced at its January meeting) by year-end, leaving speculations of any change in the monetary policy before that time pretty flat. Further out, latest results from the German and EMU dockets continue to support the view that any attempt of recovery in the region remains elusive for the time being and is expected to keep weighing on the currency.

EUR/USD levels to watch

At the moment, the pair is gaining 0.30% at 1.0913 and faces the next hurdle at 1.0917 (weekly high Feb.26) seconded by 1.0954 (38.2% Fibo of the 2020 drop) and finally 1.0981 (monthly low Nov.29 2019). On the downside, a breakdown of 1.0777 (weekly/2020 low Feb.20) would target 1.0710 (monthly low Jan.5 2016) en route to 1.0569 (monthly low Apr.10 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.

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