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EUR/USD up smalls, approaching 1.1800

  • Upside capped around 1.1860.
  • Price action exclusively determined by USD-dynamics.
  • Focus on ECB/Fed-speakers.

The single currency is alternating gains with losses vs. the greenback on Thursday, with EUR/USD hovering over the 1.1790/1.1800 area ahead of the opening bell in the Old Continent.

EUR/USD attention to ECB-speakers

The pair seems to have found strong resistance around yesterday’s tops in the 1.1860 region, coincident with the bullish attempt seen in mid-October. Fresh sellers turned up around those levels and forced spot to recede to the upper-1.1700s during the Asian trading hours.

On the USD-side, the tax reform sponsored by the White House remains in centre stage, while House Republican is expected to vote on its bill later today. Markets expect both the Senate’s bill and House GOP’s one to reconcile its differences and prompt the tax reform to be implemented by year-end.

Data wise in Europe today, EMU’s final CPI results for the month of October are due along with speeches by ECB’s Jazbec, Mersch and Constancio. Across the pond, initial claims are due seconded by the always-relevant Philly Fed manufacturing index. In addition, Cleveland Fed. L.Mester (2018 voter, hawkish), FOMC’s L.Brainard (permanent voter, dovish) and Atlanta Fed R.Kaplan (voter, hawkish) are all due to speak later in the NA session.

EUR/USD levels to watch

At the moment, the pair is up 0.02% at 1.1793 and a breakout of 1.1860 (high Nov.15) would open the door to 1.1882 (high Oct.12) and finally 1.2033 (high Sep.20). On the flip side, the next support emerges at 1.1741 (100-day sma) seconded by 1.1693 (21-day sma) and finally 1.1675 (10-day sma). In addition, FXStreet’s Technical Confluences Indicator (TCI) is noting an important support zone in the 1.1760 area, where sit a pivot point and a monthly Fibo retracement.

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