EUR/USD testing highs near 1.0640 ahead of US data

The selling bias around the greenback remains well and sound during the second half of the week, with EUR/USD now clinching fresh highs in the 1.0640 area.

EUR/USD attention to US data

The pair keeps its weekly advance intact so far today, up for the third session in a row and extending the positive streak for the fourth week, including a rebound off 14-year lows in the mid-1.0300s seen on January 3.

The lack of sustainability in the USD-rally keeps bolstering the upside in spot, despite recent positive results in the US docket and USD-supportive Fedspeak, all pointing towards further tightening by the monetary conditions by the Federal Reserve in the next months.

However, both the latest FOMC minutes and Wednesday’s press conference by president-elect Donald Trump introduced significant uncertainty regarding the future steps of the Trump administration, particularly the ability to boost the economy via fiscal stimulus, all weighing on the buck and driving it lower across the board.

Later in the session, USD could see some recovery in light of the publication of Retail Sales and the preliminary prints of the Reuters/Michigan index, as consensus sees both improving from the previous readings.

EUR/USD levels to watch

The pair is now gaining 0.25% at 1.0638 facing the next hurdle at 1.0647 (55-day sma) ahead of 1.0687 (high Jan.12) and finally 1.0798 (high Dec.5). On the other hand, a breakdown of 1.0508 (low Jan.9) would target 1.0495 (20-day sma) en route to 1.0452 (low Jan.11).


Sell 75%
Buy 25%
Avg Sell Price 1.0562
Avg Buy Price 1.0603
Liquidity Distribution


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.