- The dollar loses ground due to optimism in the stock markets.
- Data ahead of the US: third quarter GDP growth and consumer confidence.
- EUR / SUD rises for the third day in a row, returns above the 20-day average.
The EUR / USD bounced off 1.1265 and rose to 1.1310, reaching the highest level since Friday. The pair remains in the zone of highs of the day, with a bullish tone supported by the weakness of the dollar.
The market is showing limited runs ahead of the end of the year holidays, which favors the EUR / USD to remain sideways between 1.1230 and 1.1350. The short-term, bullish tone favors an approach towards 1.1350. Just a confirmation over 1.1360 would prop up the euro for more gains.
The EUR / USD advance occurs due to some weakness of the dollar, in a context of better humor in the markets. Although the main indices on Wednesday are in neutral ground, they validate the recent gains.
In the US, the focus remains on Congress and the chances of approving Biden’s social package. In addition, on Wednesday the GDP report for the third quarter will be published, which could go unnoticed as it is the third reading, which is expected to show no surprises. Later it will be the turn of the Conference Board consumer confidence index. On Thursday there will be important data: the underlying index of personal consumption spending and the report of requests for unemployment benefits.
Technical levels
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