EUR/USD to see another leg higher on a break above 1.1915

The EUR/USD pair is flirting with the 1.1900 level as the dollar weakness persists. The world’s most popular currency pair is bullish but needs to break the 1.1915 resistance level, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“Speculative interest maintains a cautiously optimistic stance ahead of the looming US Federal Reserve monetary policy decision this Wednesday. Encouraging Chinese data released at the beginning of the day kept Asian shares afloat, while their European counterparts are firmly up, underpinning the high-yielding EUR. Earlier in the European session, Germany published the September ZEW Survey, which surprised with positive figures, providing additional support to the shared currency.”

“EUR/USD is trading just above the 50% retracement of its September decline, bullish but lacking momentum. The 4-hour chart shows that the pair keeps holding above all of its moving averages, with the 20 SMA advancing above the larger ones. Technical indicators, in the meantime, remain within positive levels without directional strength. The 61.8% retracement of the mentioned decline comes at 1.1915, the level to surpass to confirm a new leg north.”

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