- EUR / USD extends the rally above 1.1800 on Wednesday.
- Selling pressure on the USD intensifies amid appetite for risk.
- A speech from the ECB and the Fed’s Beige Book will draw investors’ attention later in the session.
The buying pressure around the common currency remains firm and lifts EUR / USD to new multi-week highs in the 1.1860 / 65 region on Wednesday.
EUR / USD strengthens by risk appetite, focuses attention on data and USD
The EUR / USD moves higher for the fourth day in a row on Wednesday and consolidates bullish momentum following the recent break of the intermediate hurdle at the 55-day SMA, just below the 1.1800 level.
The persistent and strong selling bias around the US dollar remains behind the strong rally of the EUR / USD pair from last week’s lows at the 1.1690 zone, always driven by increased risk appetite in markets.
Indeed, rising hopes for additional fiscal stimulus in the US economy, coupled with expectations around a “blue wave” in the November elections, continue to weigh on the USD and drag the US Dollar DXY index to levels seen. for the last time in late September around 92.70.
Regarding euro data, the focus will be on the participation of C. Lagarde, President of the ECB, in an event. In addition, the members of the ECB’s board, L. De Guindos and P. Lane, should also speak.
What can we expect around the EUR?
EUR / USD extends the bounce from last week’s lows in the 1.1690 / 85 region and is already moving into multi-week highs well above the 1.1800 level. The outlook on EUR / USD remains constructive and bearish moves are seen as only corrective. Furthermore, the positive bias in the euro continues to be underpinned by favorable fundamental data (despite momentum appearing somewhat mitigated in several regions), the ECB’s so far cautious stance and the strong current account position of the eurozone. Furthermore, the likely “blue wave” after the US elections is seen as a negative driver for the US dollar and has the potential to lend additional strength to the pair in the long term.
EUR / USD levels
At the time of writing, the EUR / USD pair is gaining 0.30% on the day, trading at 1.1857. A breakout of 1.1862 (Oct 21 high) would target 1.1917 (Sept 10 high) en route to 1.1965 (Aug 18 high). On the other hand, the next support is at 1.1688 (low of October 15), followed by 1.1612 (low of September 25) and finally 1.1495 (high of March 9).
.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
