The Euro maintains the bullish stance against the US Dollar
The Euro keeps the bid bias unchanged against the US Dollar, motivating EUR/USD to flirt with the area of recent peaks around 1.0960 at the beginning of the week. On the flip side, the Greenback extends its bearishness and revisits the 103.20 region when gauged by the USD Index (DXY) in a context still dominated by the appetite for risky assets on Monday. Meanwhile, the index continues under pressure against the backdrop of growing speculation about an anticipated Federal Reserve (Fed) interest rate reduction in the spring of 2024. This viewpoint is nevertheless strongly supported by sustained disinflationary pressures and continuous labour market softening. On the domestic calendar, the European Central Bank’s (ECB) President Christine Lagarde will speak before the European Parliament later in the afternoon in Europe.
In the US, New Home Sales for the month of November are due seconded by the Dallas Fed Manufacturing Index in November. EUR/USD’s bullish intentions bumped against the 1.0960 region so far on Monday. The November high of 1.0965 (November 21) is now the immediate goal for bulls ahead of the critical 1.1000 level. Further north, EUR/USD might face resistance around the August top of 1.1064 (August 10) and another weekly peak of 1.1149 (July 27), all preceding the 2023 high of 1.1275 (July 18). In the meanwhile, any corrective dips should find support initially at the key 200-day SMA at 1.0810, seconded by the temporary 55-day SMA at 1.0662. Before the 2023 low of 1.0448 (October 3), the weekly low of 1.0495 (October 13) emerges below that region. Overall, the pair's chances should remain strong as long as it stays above the 200-day SMA.