- The EUR / USD is moving within a narrow range around 1.2130.
- US stimulus talks stalemate, Brexit limbo persists.
- German economic sentiment recovers to 55.0 points in December.
The EUR/USD keeps positive mood unchanged around the region of 1.2130 at the start of the American session on Tuesday.
EUR / USD seems to be on the alert ahead of the ECB
EUR / USD makes gains for the first time after two consecutive daily falls despite the general cautious stance in global markets.
In fact, renewed trade nerves between the United States and China, coupled with stalled stimulus talks and Brexit uncertainty, continue to support, albeit slightly, the US dollar so far this week.
Also, they look new inflows in common currency from sterling sell bias, as EUR / GBP continues to trade in the zone of 2-month highs around 0.9100.
Regarding the economic data of the euro, ZEW survey showed German and eurozone economic sentiment improved in December, while another third-quarter GDP revision in the euro zone now sees the economy expanding 12.5% ​​qoq, slightly below estimates.
In US data, the NFIB index fell to 101.4 in November, from 104.0 points the previous month.
What can we expect around the EUR?
EUR / USD bullish momentum faltered near the 1.22 barrier last week despite favorable sentiment in risk appetite. In the very short term, EUR / USD appears supported by the prospects for a strong recovery in the region coupled with the increasing likelihood of additional stimulus in the US The risks to this positive outlook stem from the potential political effervescence surrounding the market. EU Recovery Fund and the growing chances of further easing measures from the ECB being announced as early as Thursday’s December meeting.
EUR / USD levels
At the time of writing, the EUR / USD pair is gaining 0.16% on the day, trading at 1.2125. A breakout of 1.2177 (December 4 high), would target 1.2413 (April 17, 2018 high) en route to 1.2476 (March 27, 2018 high). On the other hand, the next support is at 1.1920 (November 9 high), followed by 1.1800 (November 23 low) and finally 1.1745 (November 11 low).
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