- EUR / USD extends recent gains well above the 1.17 level.
- Joe Biden continues to lead the results of the American elections.
- The markets’ attention remains on the FOMC decision later Thursday.
The buy bias remains firm around the common currency and lifts EUR / USD to new weekly highs around 1.1770.
EUR / USD Flirts With 55-Day SMA Near 1.1780
The EUR / USD advances for the third day in a row on Thursday and seeks to consolidate the recent upward movement supported by improved risk appetite sentiment.
In fact, the Biden’s probability of winning in the US election has been underpinning better sentiment around assets with the highest risk perceived in recent hours, such as stocks, amid the constant incessant advance of the pandemic.
It is worth remembering that additional fiscal stimulus seems more likely under Biden’s presidencyas well as a multilateral (more market-friendly) approach to the trade conflict between the United States and China.
Regarding the eurozone data, German factory orders expanded less than forecast by 0.5% month-on-month in Septemberwhile Eurozone retail sales will be released later in the day, followed by speeches by the ECB’s Luis De Guindos and Isabel Schnabel.
On the other side of the Atlantic, all investors’ attention will be on the FOMC monetary policy decision, where the Committee is expected to leave the rates unchanged.
What can we expect around the EUR?
EUR / USD picks up pace and revisits the 1.1770 region amid an environment conducive to risk appetite. In the very short term, EUR / USD is expected to remain at the mercy of USD dynamics, mainly due to the US elections, the FOMC meeting and the NFP non-farm payrolls on Friday. On the more domestic front, the euro seems supported by optimistic fundamentals in the region (despite the fact that momentum seems somewhat mitigated in several regions), although the now more pessimistic stance of the ECB justifies some caution in the bullish attempts of the pair. As usual, the euro still appears underpinned by the strong current account position of the eurozone.
EUR / USD levels
At the time of writing, the EUR / USD pair is gaining 0.34% on the day, trading at 1.1761. A break above 1.1771 (Nov 4 high) would target 1.1880 (Oct 21 high) on its way to 1.1917 (Sept 10 high). On the downside, the next support is at 1.1622 (November 2 low), followed by 1.1612 (September 25 low) and 1.1495 (March 9 high).
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Credits: Forex Street
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