- EUR / USD hit new 2020 highs near 1.2090 on Wednesday before reversing the intraday trend.
- The dollar threatens a general recovery.
After climbing to 1.2087, the new high for this year, the EUR / USD changed direction and it fell to 1.2042, the low of the day.
EUR / USD sustained by risk appetite
EUR / USD posted the biggest daily gain since March on Tuesday, advancing around 1.20% and starting to assert itself above the psychological support at 1.20. The weakness of the dollar together with the appetite for risk remain key factors for the rally of the pair.
The advancement of the vaccine is the main factor. The economic data were also being economic, but this week they are showing a slowdown on both sides of the ocean, although in some cases with figures higher than expected.
On Wednesday it became known that retail sales in Germany expanded 2.6% in October, exceeding expectations. In the Eurozone, producer prices increased 0.4% in October (-2% annually) and the unemployment rate fell to 8.4%.
In the US, the ADP report for November will be published first, then it will be the turn of the ISM of New York, and the Beige Book of the Federal Reserve. In addition, Jerome Powell and Steven Mnuchin will return to Congress.
Levels to consider
Get up, Above the highs of 1.2087, the EUR / USD would go looking for 1.2100. The next resistance is seen at 1.2160. The negative intraday tone could change if there is a return above 1.2060, whichEU is where the 20 hour moving average is passing. The next support is seen at 1.2030 and then 1.2000 will follow.
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