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EUR/USD Off Highs, as Risk Appetite Fades, But Underlying Tone Remains Buoyant

EUR
MNI (London)
  • COVID spread concerns, along with a late reaction to the Polish and Hungarian veto of the EU Recovery Fund, saw EUR/USD reverse away from its Europe high of $1.1891(just shy of Tuesday's high of $1.1894) to an eventual low of $1.1849 ahead of the close.
  • Risk lost some of its recent shine as equities reacted to COVID concerns, the USD opening Asia with a firm tone which pressed EUR/USD to an extended pullback low of $1.1832 before demand began to emerge.
  • Rate recovered through the session to $1.1852, holding around $1.1850 into Europe.
  • Support $1.1832 ahead of $1.1820, stronger into $1.1800. Resistance $1.1850/60, $1.1880, stronger from $1.1890 through to $1.1900(option related) ahead of recent high at $1.1920.
  • ECB Current Account at 0900GMT.
  • ECB Lagarde speaks today at 0800GMT, statement to EU Parliament, at 1000GMT statement in her capacity as ESRB chair, and at 1500GMT at Womens' Forum. ECB Villeroy, de Cos and Schnabel also speak.
  • US Initial Jobless Claims and Phila Fed at 1330, Existing Home Sales at 1500GMT. Fed Mester(1330GMT), Fed Rosengren(1800GMT) also on the docket.
  • MNI Techs: EURUSD maintains a firmer tone although the pair has stalled at recent highs. The move lower between Nov 9 - 11 is considered a correction and a bullish theme has been reinforced by the recent breach of 1.1881, Oct 21 high. The break higher opens this year's high print of 1.2011 on Sep 1 with the immediate bull trigger at 1.1920, Nov 9 high. On the downside, initial firm support to watch is at 1.1746, Nov 11 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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