EUR/USD moves to 4-month highs beyond the 1.1400 mark
- EUR/USD reclaimed the 1.1400 barrier and above on Tuesday.
- Solid risk-on sentiment keeps bolstering the upside in the pair.
- EU-India Summit will be the only event of note in Europe.
The buying interest around the single currency remains well and sound for yet another session on Wednesday, with EUR/USD trading in fresh 4-month peaks in the 1.1430/35 band.
EUR/USD looks to risk trends, pandemic
EUR/USD is up for the fourth consecutive session on Wednesday, trading on a firm note and always underpinned by the broad-based weakness surrounding the greenback.
Propping up the risk-on mood, news that a potential COVID-19 vaccine could be delivered earlier than expected boosted further the risk-universe on Tuesday after auspicious headlines from US biotech Moderna (NASDAQ: MRNA).
In the calendar, the EU-India Summit will be the salient event later on Wednesday. Across the pond, Industrial/Manufacturing Production will take centre stage seconded by the NY Empire State index and the publication of the Fed’s Beige Book. In addition, FOMC’s T.Harker will speak and the EIA will release its weekly report on crude inventories.
What to look for around EUR
EUR/USD is challenging multi-month peaks beyond 1.1400 the figure, always on the back of the upbeat risk appetite trends and helped at the same time by better-than-forecasted results in some key fundamentals in the region. Also supportive of a strong euro appears the solid stance of the current account in the euro area.
EUR/USD levels to watch
At the moment, the pair is gaining 0.30% at 1.1434 and a breakout of 1.1448 (50% Fibo of the 2017-2018 rally) would target 1.1495 (2020 high Mar.9) en route to 1.1514 (high Jan.31 2019). On the other hand, immediate contention is located at 1.1186 (61.8% Fibo of the 2017-2018 rally) seconded by 1.1168 (monthly low Jun.19) and finally 1.1147 (high Mar.27).