EUR/USD has shown resilience in the face of risk aversion and uncertainty about U.S. fiscal stimulus, the Nov.
3 election and the pandemic, which should bode well for a rise to test September's high.
It has been consolidating gains off the Oct.
15 daily low after the 10-day moving average helped stall the slide, holding above the key 1.1765/95 support zone.
The bounce drove EUR/USD back above the daily cloud top and put the 61.8% Fibo of 1.2014-1.16125 back in play.
Given EUR/USD's recent correlation to equities and commodities, its ability to shrug off setbacks in those markets should hearten bulls, who could also be encouraged by its limited downside despite CFTC data nL1N2HE1N4 indicating investors still hold large net-long euro positions.
EUR/USD has also shown resiliency in the face of weakness in China's yuan.
USD/CNH CNH= rallied nearly 1.5% off the Oct.
21 daily low.
EUR/USD's retreat from its Oct.
21 high is less than 0.50% so far.
Should EUR/USD's consolidation phase resolve with a break higher, the 1.1915/30 zone and September's high would be targeted.
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