FXStreet (Edinburgh) – The common currency is now gathering further traction vs. the dollar, lifting EUR/USD to test fresh daily highs in the proximity of 1.09 the figure.
EUR/USD firmer ahead of FOMC
Spot has seen its upside accelerated after a bout of selling pressure dragged the greenback below the key 99.00 handle when measured by the US Dollar Index (DXY), slipping to new lows for the day and ahead of the FOMC gathering expected later in the European evening.
The pair is thus trading in weekly highs near the 1.0900 handle, extending further its bounce off the 1.0770 area recorded after last week’s ECB meeting. Next on tap for the pair will be New Home Sales in the US economy, expected at 500K during December.
EUR/USD levels to watch
The pair is now advancing 0.27% at 1.0888 and a breakout of 1.0981 (100-day sma) would target 1.1055 (200-day sma) en route to 1.1059 (high Dec.15). On the flip side, the immediate support aligns at 1.0777 (post-ECB low Jan.21) followed by 1.0737 (38.2% Fibo of 1.0538-1.1059) and finally 1.0709 (low Jan.5).
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