The EUR/USD maintains the daily range unchanged and operates around the 1.1870 zone after the Eurozone consumer confidence data came out just one tenth better than expected in its preliminary November reading, -17.6 versus -17.7, worsening the -15.5 October.
EUR / USD remains capped at 1.1900
EUR / USD remains unchanged in consolidation mood for yet another session on Friday, although it manages well to close the week with positive figures despite not having the strength to revisit / break above the 1.19 level.
Meanwhile, investors’ attention remains on the evolution of the coronavirus pandemic and the restriction measures implemented by an increasing number of countries to curb the upward trend in infected cases. The impact on the economy, however, seems somewhat diluted by growing hopes for an effective vaccine in the not too distant future.
In addition, the single currency is closely monitoring the political front in Europe in response to planned Hungarian and Polish vetoes of the EU Recovery Fund. The debate on this topic could generate turmoil in the euro and could in some way undermine a serious bullish move.
What to look for around EUR
EUR / USD once again failed to retest, let alone exceed, the 1.1900 level despite the favorable context in the current week. However, in the very short term, the EUR / USD is expected to remain under scrutiny due to the impact of the pandemic on the region’s economy and developments around the Recovery Fund. Furthermore, the dovish stance of the ECB and possible announcements of additional stimulus in December also limit the pair’s potential gains.
At the moment, the pair is losing 0.03% at 1.1869 and faces the next support at 1.1745 (weekly low on Nov 11) followed by 1.1709 (Fibonacci level from the 2017-2018 rally) and finally 1.1602 (monthly low on Nov 4). November). On the upside, a breakout above 1.1920 (Nov. 9 monthly high) would point to 1.1965 (Aug. 18 monthly high) en route to 1.2011 (Sept. 1, 2020 high).