EUR/USD leaps to session tops near 1.1040 on USD-selling
- EUR/USD clinches tops in the 1.1040/45 band.
- The dollar loses ground and trades in daily lows.
- ECB’s Lagarde said the bank is monitoring its policy.
The buying pressure around the single currency has picked up sudden pace on Monday and is now lifting EUR/USD to daily highs near 1.1030.
EUR/USD now looks at the 55-day SMA
The pair has reversed the earlier drop to session lows in the vicinity of the 1.1000 handle on Monday and is now flirting with multi-day highs in the area of 1.1040, where sits the key 55-day SMA.
A fresh wave of selling pressure in the greenback is lending extra oxygen to the pair and sponsoring in turn the moderate rebound from earlier lows.
Additionally, EUR remained mostly apathetic after ECB’s Lagarde said before the European Parliament that the central bank is monitoring the effects of its policies while reiterating once again that the region’s growth outlook remains weak (no news here).
In the US docket, the greenback is expected to remain under scrutiny later today in light of the release of the ISM Manufacturing for the month of November.
What to look for around EUR
The pair keeps correcting higher after finding quite solid support in the 1.0990 region last week. The euro, in the meantime, is expected to keep tracking developments from the US-China trade dispute as well as USD-dynamics. On the more macro view, the slowdown in the region appears far from abated despite some positive results from key fundamentals in Germany as of late. This does nothing but justify the ‘looser for longer’ monetary stance by the ECB and the cautious/bearish view on the European currency in the medium term.
EUR/USD levels to watch
At the moment, the pair is gaining 0.21% at 1.1038 and faces the next hurdle at 1.1072 (100-day SMA) ahead of 1.1097 (monthly high Nov.21) and finally 1.1162 (200-day SMA). On the other hand, a breakdown of 1.0989 (monthly low Nov.14) would target 1.0925 (low Sep.3) en route to 1.0879 (2019 low Oct.1).