EUR/USD keeps weekly tops near 1.1900 on US data, looks to ECB

• EUR/USD falters just pips away from the 1.19 mark.
• US Retail Sales expanded less than predicted in October.
• EBC’s C.Lagarde comes up next in the euro calendar.

EUR/USD keeps the bid bias unchanged on Tuesday and climbs to fresh weekly highs in the 1.1885/90 band, just to recede somewhat soon afterwards.

EUR/USD looks to data and the ECB

EUR/USD manages to reach the vicinity of 1.1900 the figure in the second half of the week, although the upside impetus appears to struggle to overcome this key barrier for the time being. A surpass of this level should open the door to a move to monthly tops around 1.1920 (November 9).

The persistent weakness surrounding the greenback remains well in place in the meantime amidst vaccine hopes and in spite of the unremitting advance of the pandemic across the globe.

In the US data sphere, headline Retail Sales expanded 0.3% MoM during October, coming in short of expectations. Core sales followed suit and expanded at a meagre 0.2% from a month earlier.

Still in the US calendar, Industrial/Manufacturing Production, Capacity Utilization, Business Inventories, TIC Flows and the NAHB Index are all next on tap.

In addition, FOMC’s R.Bostic, M.Daly and J.Williams will also speak later on Tuesday.

What to look for around EUR

EUR/USD is once again putting the key resistance in the 1.1870 region to the test amidst a favourable context in the risk appetite trends. In the very near-term, however, EUR/USD is expected to remain under scrutiny on dollar dynamics mainly coming from the US post-elections scenario and the progress of the coronavirus pandemic. On the more domestic front, the euro appears propped up by auspicious results from domestic fundamentals (despite momentum appears somewhat mitigated in several regions), although the now more dovish stance from the ECB prompts some caution when comes to bullish attempts. As usual, the euro still looks supported by the solid position of the EMU’s current account.

EUR/USD levels to watch

At the moment, the pair is gaining 0.30% at 1.1885 and a break above 1.1920 (monthly high Nov.9) would target 1.1965 (monthly high Aug.18) en route to 1.2011 (2020 high Sep.1). On the other hand, the next support emerges at 1.1745 (weekly low Nov.11) followed by 1.1709 (Fibo level of the 2017-2018 rally) and finally 1.1602 (monthly low Nov.4).