EUR/USD stretches higher to test day highs at 1.1895

The euro is pushing higher on the late US session on Tuesday to retest session high at 1.1895 which, so far, remains intact. The pair has bounced up from intra-day support at 1.1840 and is nearing resistance area in the vicinity of 1.1900  

Euro advances against a weaker USD

The positive market sentiment generated after the pharmaceutical giant AstraZeneca released the promising result of its COVID-19 vaccine on Monday has extended into Tuesday’s trading. The safe-haven dollar has been weighed by the upbeat market sentiment that has reflected into solid advances on the main equity indexes.

In the US, President Trump has finally accepted a formal transition in the US and Joe Biden has announced the appointment of former Fed chair, Janet Yellen, as the next Treasury Secretary, which has been welcomed by the market and has contributed to sustaining the positive mood.    

On the macroeconomic front, Eurozone figures have beaten expectations. The German IFO business climate survey and third quarter’s GDP have shown better than expected readings. US data, on the other hand, has been mixed, with the good news on housing prices offset by the downbeat consumer confidence.

EUR/USD: rallies to 1.1900 seen as good selling opportunities – Rabobank

From a wider perspective, the Rabobank FX Analysis Team sees the euro unlikely to breach 1.20 and contemplates rallies to 1.1900 as good selling opportunities: “The repeated failure of the currency pair to move above the 1.19 level comes at a time when fundamentals factors may also be putting some hurdles in front of the EUR (…) We would favour selling any further rallies towards EUR/USD1.19 in the near-term.” 

Technical levels to watch