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EUR/USD firmer, approaches 1.1400

12/4/2018, 3:46:31 PMMarket Analysis
EUR/USD firmer, approaches 1.1400

The buying bias around the single currency stays well and sound so far in the first half of the week and is now pushing EUR/USD to test daily highs near 1.1400 the figure.

EUR/USD looks to Italy, trade

The pair is adding to Monday’s gains in a context favourable to the risk-associated complex, where trade concerns appears somewhat alleviated and some positive news from Italian politics has given some extra oxygen to EUR.

In fact, earlier news suggested Italian government could reduce the budget deficit to around 2.0% (from 2.4%), although nothing has been confirmed so far.

In addition, markets continue to adjust to the recent US-China 90-day trade truce, also collaborating with the sentiment around spot.

Nothing worth mentioning in the docket today, with only Producer Prices expected in Euroland.

EUR/USD levels to watch

At the moment, the pair is up 0.28% at 1.1387 and a breakout of 1.1403 (high Nov.29) would target 1.1434 (high Nov.22) en route to 1.1473 (high Nov.20). On the flip side, the next support emerges at 1.1267 (low Nov.28) followed by 1.1214 (2018 low Nov.12) and finally 1.1188 (61.8% Fibo of the 2017-2018 rally).