EUR/USD in a consolidation phase near 1.1650
- Consolidates near 5-day tops in tandem with DXY.
- 1.1675 holds the key for further upside.
- US consumer sentiment and tax reform updates eyed.
Having test five-day tops of 1.1655 in early Asia, the EUR/USD pair entered a phase of upside consolidation, as the bulls await fresh impetus for the next leg higher.
EUR/USD defends bids near 1.1650
The spot trades around a flat-line in early Europe, closely tracking the USD price-action, as investors remain wary over the US tax reform plan, especially after the Senate Republicans confirmed a delay in the corporate tax cuts until 2019.
The main currency pair broke the recent range trade and now looks poised for a test of 1.17 handle, as the US dollar weakness is likely to extend, with holiday-thinned light trading to exaggerate the moves. The US markets closed today in observance of Veterans Day.
More so, upbeat EU economic forecasts released yester ay will also continue to buoy the sentiment around the EUR, as the immediate focus now remains on the industrial data due out from France and Italy. Also, of note will be the US UoM consumer sentiment data slated for release in the NA session.
EUR/USD Technical Levels
Jim Langlands at FX Charts, noted: “A topside break of 1.1675 would trigger stops and could see a run back to 1.1700 where the 100 DMA will provide stern resistance, but above there could see a bigger squeeze towards the descending trend resistance at 1.1780. On the downside, minor support will today be seen at 1.1620 and again at the recent lows at around 1.1580/85, where the rising trend support also lies. Below there, the trend low at 1.1553 and the Fibo level at 1.1510 will come into play although probably not today.”