EUR/USD stays close to monthly highs around 1.1080

The shared currency keeps the rally well and sound so far this week, lifting EUR/USD to the area of monthly tops around 1.1080.

EUR/USD focused on EU Summit, Brexit

The pair is up for the third session in a row on Thursday and extending the up move for the third week in a row after bottoming out in the 1.0880 region earlier in the month.

The renewed and constant weakness around the Greenback has been almost exclusively sustaining the increasing upside momentum in spot as well as rising hopes of a Brexit deal.

Regarding the latter, all the attention today (and tomorrow) will be on the EU Summit in Brussels, where negotiations between EU and UK officials are expected to pick up pace.

Nothing noteworthy expected in the euro-calendar today, whereas the Philly Fed index and Industrial/Manufacturing Production figures will be the salient releases across the Atlantic.

What to look for around EUR

The upside momentum in the pair has extended further north of the critical 55-day SMA and it is now targeting the September’s peak beyond 1.11 the figure. The positive 3-week streak in spot has been sponsored by the persistent offered bias in the Dollar. However, the outlook in Euroland continues to deteriorate and does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the bearish view on the single currency in the longer run. On another front, the Brexit process and its impact on the risk-associated complex is also affecting the price action around the pair while sporadic rumours of German fiscal stimulus also add volatility to the market now and then.

EUR/USD levels to watch

At the moment, the pair is gaining 0.09% at 1.1081 and faces the next barrier at 1.1109 (monthly high Sep.13) seconded by 1.1137 (100-day SMA) and finally 1.1163 (high Aug.26). On the flip side, a break below 1.1049 (55-day SMA) would target 1.0988 (21-day SMA) en route to 1.0879 (2019 low Oct.1).