EUR/USD tests new highs near 1.1765 following US data and statements by Bullard

EUR/USD has reacted to the rise after knowing the United States production prices, which grew more than expected in October. The pair has risen to a new high of almost three weeks at 1.1765.

US: Bullard mitigates any USD push despite production prices rise

US production prices increased 0.4% in October, above the 0.1% expected and 2.8% year-on-year, exceeding the estimated 2.4%. Excluding energy and food, they grew 0.4% monthly and 2.4% annually, improving prospects in both cases.

For his part, James Bullard, president of the St. Louis Fed, said that current interest rates are still appropriate in the short term.

EUR/USD perspective

With the crossover now trading above 1.1755/60, 0.78% above its opening price, traders will now wait for ECB member Benoit Coeure’s speech and data on weekly US crude oil reserves.

On the upside, the next resistance is at 1.1797 (55-day simple moving average). Above, it expects 1.1837, maximum on October 26th, en route to 1.1860 (October 19th minimum).

On the downside, the next support emerges at 1.1689 (21-day simple moving average), seconded by 1.1640 (10-day simple moving average) and finally 1.1554 (November 7th minimum).

Written by: FXStreet