- EUR / USD rises to new highs near the 1.20 level.
- The weakness of the dollar supports the rise of the pair.
- Germany’s preliminary inflation figures stand out on today’s economic calendar.
The bullish momentum in the common currency lifts EUR / USD to the region of new multi-week highs above 1.1980 level.
EUR / USD now targets 1.2000
The EUR / USD moves higher for the fifth day in a row on Monday and is approaching the key psychological level of 1.20 during Monday’s European session.
EUR / USD extends bullish movement always in response to persistent selling bias around the US dollar. Hopes for a strong recovery in the global economy, the optimism on an effective vaccine and renewed prospects for additional US stimulus under Biden are fueling investors’ risk appetite and weighing on the safe-haven USD.
Regarding the euro zone data, inflation figures for Spain have shown that the CPI is expected to rise 0.2% month-on-month in November and contract 0.8% in the last twelve months. In Italy, consumer prices are forecast to contract 0.1% month-on-month and 0.2% from a year earlier. Later in the day, ECB President C. Lagarde is scheduled to have a speech, followed by the release of the preliminary CPI for Germany and the speech by Board member P. Hakkarainen.
What can we expect around the EUR?
The EUR / USD upward movement is approaching the round 1.20 level and opens the door to a possible test of the yearly highs near 1.2020, always in the context of a favorable sentiment for risk appetite. In the very short term, EUR / USD appears supported by prospects for a strong recovery in the region coupled with the increasing likelihood of additional stimulus in the US Risks to the common currency stem from possible political turmoil around the EU Recovery Fund and the growing chances of further easing measures from the ECB being announced as early as the December meeting.
EUR / USD levels
At the time of writing, the EUR / USD pair is gaining 0.18% on the day, trading at 1.1984. A break above 1.2000 (psychological level), would target 1.2011 (September 1 high) en route to 1.2032 (23.6% Fibonacci retracement of the 2017-2018 move). On the other hand, immediate support is at 1.1800 (November 23 low), followed by 1.1745 (November 11 low) and finally 1.1709 (Fibonacci retracement of the 2017-2018 movement).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
