- EUR / USD reverses the recent drop and points back to the 1.1900 level.
- The German IFO index beat estimates in November.
- Consumer confidence and data from the US housing sector will focus the attention of investors in the American session.
The best tone around the common currency lifts the pair EUR / USD to new daily highs in the 1.1890 region.
EUR / USD targets 1.1900 level and beyond
The EUR / USD manages to reverse two consecutive daily declines and regains traction to the upside on Tuesday.
The renewed weakness around the US dollar sustains resumption of bullish momentum in EUR / USD amid widespread improvement in risk appetite. The Growing hopes for an efficient vaccine coupled with the vision of a “V” shaped recovery continue to support the peer. and the rest of the assets associated with the risk.
In addition to the bullish tone of the euro, German business climate measured by IFO survey beat estimates, reaching 90.7 in November, although it was slightly below the October figure. At the beginning of the session, German GDP figures showed that the economy expanded by 8.5% during the July-September period, improving expectations.
Across the Atlantic, the Conference Board will release its consumer confidence indicator followed by the release of the S & P / Case-Shiller Index and the FHFA House Price Index.
What can we expect around the EUR?
EUR / USD was rejected from just above the 1.19 level at the beginning of the week. In the very short term, the EUR / USD is expected to remain under pressure due to the impact of the pandemic on the region’s economy and the political developments around the EU Recovery Fund. Furthermore, the dovish stance of the ECB and possible announcements of additional stimulus in December also contribute to the resurgence of cautious attitude among investors.
EUR / USD levels
At the time of writing, the EUR / USD pair is gaining 0.35% on the day, trading at 1.1881. A break above 1.1920 (Nov 9 high) would target 1.1965 (Aug 18 high) on the way to 1.2011 (Sept 1 high). On the other hand, immediate support is at 1.1745 (November 11 low), followed by 1.1709 (Fibonacci level of the 2017-2018 movement) and finally 1.1602 (November 4 low).
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