- The euro bounces from week-long lows against the dollar to 1.1770.
- EUR / USD finds support around the 20-day moving average.
The pair EUR/USD It hit a new daily high at 1.1770 during the US session amid a decline in the US dollar across the board. The dollar retreats favoring an upward movement of the pair. The DXY falls 0.22% and is trading below 93.30, cutting weekly gains.
Data released on Wednesday from the US showed the Producer Price Index (PPI) rose 0.4% in September, above the 0.2% market consensus. The numbers have no impact on the market. The weekly unemployment claims report will be released on Thursday.
Stock prices on Wall Street are mixed on Thursday, following the report from major financial institutions. Traders await a resolution on fiscal stimulus. The question is when and how, if before or after the elections. A short-term resolution could boost risk appetite, weakening the dollar.
Levels to watch
Earlier today, EUR / USD bottomed at 1.1719, the lowest level since October 5. The euro then rallied and rose again above the 20-day moving average of 1.1740. At the moment, it is trading at 1.1765, up 20 pips on the day. A daily close clearly below that line would suggest more weakness going forward. On the upside, the next key resistance is 1.1800 followed by the October high at 1.1830.
Credits: Forex Street
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