EUR/USD volatile now, fades the bull run to 1.0920

A bout of selling pressure around the buck is allowing EUR/USD to revert the earlier drop and advance to session tops beyond 1.0900 the figure, just to lose momentum soon afterwards.

EUR/USD spikes to 1.0920

The pair has briefly tested the positive territory although it remains under heavy pressure amidst a broad-based preference for the US dollar.

The greenback remains well underpinned by post-Trump sentiment and rising speculations on a Fed’s rate hike likely to be announced at its December meeting.

In that regard Fed’s Vice Chariman S.Fischer advocated for a gradual tightening by the Federal Reserve in order to mitigate potential spillovers, while stressing at the same time that the Fed is closer to achieve its inflation and employment targets.

In the meantime, any bullish attempt amidst the current context should remain under the ‘sell-the-rallies’ recommendation, as monetary policy divergence between the Fed and the ECB is poised to drive markets in the next weeks.

Later in the NA session, the Reuters/Michigan index, which gauges the US Consumer Sentiment, is expected to tick higher to 89.5 during November.

EUR/USD levels to watch

The pair is now retreating 0.04% at 1.0892 facing the next support at 1.0854 (low Nov.11) followed by 1.0848 (low Oct.25) and finally 1.0820 (low Mar.10). On the other hand, a breakout of 1.0958 (high Nov.10) would target 1.0974 (20-day sma) en route to 1.1029 (23.6% Fibo of the May-October drop).

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