EUR/USD remains firm around 1.1850 post-US data

EUR/USD keeps pushing higher in the mid-1.1800s.
EMU Producer Prices rose 2.3% MoM, 12.1% YoY in July.
US Initial Claims rose by 340K from a week earlier.

Pablo Piovano FXStreet

The buying pressure around EUR/USD remains unabated and now trades at shouting distance from weekly highs near 1.1860.

EUR/USD now re-refocuses on Payrolls

The 5-day positive streak in EUR/USD stays well and sound around multi-week levels well past the 1.1800 mark in the second half of the week.

Further upside in spot comes in response to the perseverant selling bias in the buck, which remains under moderate pressure ahead of Friday’s Nonfarm Payrolls and steady yields.

Earlier in the session, Producer Prices in the euro area rose more than expected, while the Spanish Unemployment Change extended the downtrend in August (-82.6K).

In the US data universe, Initial Claims rose by 340K in the week ended on August 28, bettering estimates. Further data saw the trade deficit shrinking to $70 billion during July (from $73.2 billion). Later in NA session, July’s Factory Orders will close the daily calendar.

EUR/USD levels to watch

So far, spot is gaining 0.13% at 1.1853 and faces the next up barrier at 1.1857 (monthly high Sep.1) followed by 1.1908 (monthly high Jul.30) and finally 1.1952(100-day SMA). On the downside, a break below 1.1815 (55-day SMA) would target 1663 (2021 low Aug.20) en route to 1.1612 (monthly low Oct.20 2020).

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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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