EUR/USD looks to consolidate the breakout of 1.1900
- EUR/USD extends the march further north of 1.1900.
- USD-weakness continues to support the upside in spot.
- EMU’s Final November Consumer Confidence, ECB-speak next on tap.
The upbeat note in the single currency remains well in place for yet another session and encourages EUR/USD to consolidate the recent move beyond 1.19 the figure.
EUR/USD looks to data, sentiment
EUR/USD advances for the fourth consecutive session so far at the end of the week, always on the back of persistent dollar weakness and solid optimism on a strong recovery of the economy post-pandemic. This view has been exacerbated as of late in response to vaccine news.
Earlier in the docket, French GDP figures came in above expectations, showing the economy expanded 18.7% QoQ in the July-September period and preliminary inflation figures also surprised to the upside, with the CPI expected to gain 0.2% MoM in November.
Later, the final Consumer Confidence in the euro area is due along with speeches by ECB’s E.Panetta and I.Schnabel. There are no data releases scheduled in the US calendar.
What to look for around EUR
EUR/USD manages to leave behind the 1.19 mark amidst a favourable atmosphere for the risk complex. In the very near-term, EUR/USD appears supported by prospects of a strong recovery in the region along with the increasing likelihood of extra stimulus in the US. Risks to this positive view emerge from the potential political effervescence around the EU Recovery Fund and increasing chances of further ECB easing to be announced as soon as at the December meeting.
EUR/USD levels to watch
At the moment, the pair is gaining 0.12% at 1.1926 and a break above 1.1941 (monthly high Nov.26) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1). On the flip side, immediate contention emerges at 1.1800 (low Nov.23) followed by 1.1745 (weekly low Nov.11) and finally 1.1709 (Fibo level of the 2017-2018 rally).