EUR / USD finds support at 1.1850 and consolidates recent gains

• EUR / USD remains in range despite the weakness of the US dollar.
• The US dollar and the euro are among the worst performers among the G10 currencies on Wednesday.

The EUR/USD it found support (again) at the 1.1850 area and bounced back to the 1.1870 area. It continues to trade in the 1.1850-1.1890 range, maintaining recent gains. A week ago, it was trading below 1.1750. Positive risk sentiment and a weaker dollar offer support to the pair.

The DXY is falling on Wednesday, trading slightly above 92.20, at one-week lows. The dollar faces pressure amid an improvement in market sentiment. The euro is also among the worst performers in the G10 space, probably affected by the decline in the EUR / GBP.

EUR / USD, risk appetite and central banks

Economic data from the US and the Eurozone had no impact on EUR / USD. The pair continues to maintain a positive correlation with the Wall Street indices. In the very short term, a firm breakout of the Dow Jones above the 30,000 area could send the euro firmly above 1.1900 or even 1.2000, if current market conditions prevail.

“The euro remains well supported, and a slow and steady move to the 1.2000 level by the end of the year still looks very possible. Markets are also highly valued for the ECB’s monetary easing on December 10, which has had little impact on the performance of the euro, ”commented MUFG Bank analysts. They do not see the degree of action of the ECB as decisive for management. “Our sense is that the market prices are based on a basic extension of the current position rather than something else. The direction of the EUR / USD from here is really more on the action of the Fed the following week, on December 16 ”.