EUR/USD edging higher to 1.1600, USD loses momentum
- Spot regained the 1.16 neighbourhood on Wednesday.
- USD broadly offered on tax reform uncertainty.
- Tough resistance seen in the 1.1660 region.
The shared currency remains bid on Wednesday and is helping EUR/USD to move higher towards the 1.1600 neighbourhood.
EUR/USD up on USD-selling
The buying interest around EUR stays well and sound today, although spot remains unable to break above the persistent consolidative theme prevailing since the start of the week.
After bottoming out in fresh multi-month lows in the mid-1.1500s on Tuesday, spot managed to leave behind that initial weakness and revert the momentum on the back of a renewed selling mood hitting the buck.
In fact, the greenback looks fragile today in response to rising uncertainty surrounding the US tax reform amidst internal fighting between Republicans and strong opposition from Democrats.
In the data space, French trade deficit widened to €4.7 billion in September and Spanish industrial production expanded 3.4% on a year to September, surpassing estimates.
On the US data front, the only release of note will be the DoE’s report on US crude oil stockpiles.
EUR/USD levels to watch
At the moment, the pair is up 0.11% at 1.1601 and a breakout of 1.1624 (10-day sma) would open the door to 1.1692 (high Nov.3) and then 1.1717 (21-day sma). On the other hand, the next support is located at 1.1555 (low Nov.7) seconded by 1.1448 (high Jun.30) and finally 1.1280 (200-day sma). Furthermore, FXStreet’s Technical Confluences Indicator (TCI) is noting an important resistance zone in the mid-1.1600s, where sit a pivot point and the hourly upper Bollinger Band.