Purchase interest in the European currency is accelerating, raising the EUR/USD to new highs of several weeks above 1.1930.
The EUR/USD in levels seen in September
The pair’s bullish momentum continues to be supported by rising sales in the US dollar, which received an extra boost after the US dollar index broke below critical support of 93.00 at the start of the session.
The EUR also gained support for the favorable results of the German IFO in November published during the European session, which added to the positive surprise of the eurozone’s advanced PMIs published on Thursday.
On the USD side, market participants continue to relax their long positions in the dollar, particularly after the moderate tone of the FOMC minutes and comments from President Yellen, who expressed concern about the lack of traction in the figures of inflation. In addition, the PMI data of services and manufactures of the USA. They were worse than expected in their November preliminaries.
Levels of EUR / USD
At the time of writing, the pair is gaining 0.63% at 1.1923 where a break of 1.2033 (September 20 high) would point to 1.2069 (August 29 high) on the way to 1.2094 (2017 high on the 8th September). On the other hand, the next support is at 1.1781 (10-day moving average), followed by 1.1765 (12-day moving average) and finally 1.1713 (November 21 low).
Written by: FXStreet