EUR/USD eyes 1.1800, USD weaker

The single currency is now appreciating further vs. the greenback, lifting EUR/USD to fresh tops in the 1.1800 neighbourhood.

EUR/USD boosted by USD-selling

The pair’s upside intensified on Thursday following a renewed selling sentiment around the buck, forcing the US Dollar Index to break below the critical support at 92.00 the figure.

In fact, USD is partially retracing the recent strong up move, as market participants seem to have already digested yesterday’s announcement regarding the long-waited tax reform and are now cashing up some of those gains.

Furthermore, the demand for the European currency accelerated today despite advanced inflation figures in Germany are expected below initial expectations in September when gauged by the broader HICP, reinforcing the idea that the current squeeze higher is exclusively USD-motivated.

EUR/USD levels to watch

At the moment, the pair is gaining 0.41% at 1.1795 facing the next hurdle at 1.1811 (55-day sma) followed by 1.1879 (10-day sma) and finally 1.1908 (21-day sma). On the other hand, a breakdown of 1.1662 (low Aug.17) would target 1.1555 (100-day sma) en route to 1.1329 (low Jul.6).