FXStreet (Edinburgh) – The common currency keeps its firm tone vs. the greenback at the end of the week, with EUR/USD gyrating around the 1.10 handle.
EUR/USD boosted by USD-selling, month-end flows
The pair is extending its upside after bottoming out in the 1.0900 neighbourhood following the dovish tone from the FOMC meeting, propped up by a renewed selling interest around the greenback and favourable month-end flows.
With EMU’s CPI already in the rear-view mirror, market participants have shifted their focus to the US docket, where Personal Income/Spending, PCE and the Reuters/Michigan index are all due.
EUR/USD levels to watch
As of writing the pair is advancing 0.29% at 1.1009 and a break above 1.1111 (200-day sma) would target 1.1125 (61.8% Fibo of 1.1496-1.0897) en route to 1.1190 (downtrend from 1.1496). On the other hand, the initial support lines up at 1.0897 (low post-FOMC Oct.28) followed by 1.0847 (low Aug.5) and finally 1.0808 (low Jul.20).
(Market News Provided by FXstreet)