EUR / USD consolidating around the 1.1800 level before the ECB

• EUR / USD maintains the trading range around 1.1800.
• Investor attention is focused on US policy and the COVID-19 vaccine.
• Lagarde’s speech will draw investors’ attention later Wednesday.

The common currency continues to consolidate after Monday’s deep pullback and makes the EUR / USD extend current consolidation around 1.1800 level.

EUR / USD focuses attention on the language of the ECB

EUR / USD moves within a tight range in the middle of the week after the Widespread cautious sentiment in global markets in the wake of the US elections and the hope that a coronavirus vaccine can be developed by the end of the year or early 2021.

While the appetite for risk should initially appear favored by these issues, the progress of Trump to challenge some electoral results and the relentless advance of the pandemic worldwide they provoke some caution at least in the short term.

Later, in the Eurozone, investors are expected to turn their attention to speeches by the ECB’s C. Lagarde, L. De Guindos and P. Lane amid an otherwise empty economic calendar.

What can we expect around the EUR?

EUR / USD remains in consolidation for the second day in a row after Monday’s strong gains above the 1.19 level. In the very short term, the EUR / USD pair is expected to remain under pressure from the dollar dynamics coming mainly from the post-election scenario in the US and the progress of the pandemic. On the more domestic front, the euro seems supported by upbeat results from the region’s fundamentals (despite the fact that momentum seems somewhat mitigated in several regions), although the now more pessimistic stance of the ECB suggests some caution in the bullish attempts of the pair. As usual, the euro still appears supported by the strong position of the euro area current account.

EUR / USD levels

At the time of writing, the EUR / USD pair is shedding 0.15% on the day, trading at 1.1795. The next support is at 1.1779 (November 10 low), followed by 1.1709 (Fibonacci level of the 2017-2018 move) and 1.1602 (November 4 low). On the other hand, a break above 1.1920 (November 9 high), would target 1.1965 (August 18 high) on the way to 1.2011 (September 1 high).