EUR/USD looks side-lined above 1.1800 ahead of ECB

• EUR/USD keeps the rangebound trading around 1.1800.
• Investors’ attention looks to US politics, COVID-19 vaccine.
• ECB-speak will take centre stage later on Wednesday.

The single currency continues to consolidate following Monday’s deep pullback and prompts EUR/USD to extend the current consolidative mood above the 1.1800 barrier.

EUR/USD focused on ECB-speak

EUR/USD navigates within a narrow range in the middle of the week following the generalized cautious tone in the global markets in the wake of the US elections and hopes that a vaccine against the coronavirus could be developed by year-end/early 2021.

While the risk complex should appear initially favoured by these themes, Trump’s progress to contest some election results and the unremitting advance of the pandemic across the world prompt some caution in the short-term at least.

Later in the euro area, investors’ focus is expected to be on the speeches by ECB’s C.Lagarde, L.De Guindos and P.Lane amidst an otherwise empty docket.

What to look for around EUR

EUR/USD sticks to the consolidative mood for the second session in a row following Monday’s strong gains to the area beyond 1.19 the figure. In the very near-term, EUR/USD is expected to remain under scrutiny on dollar dynamics mainly coming from the US post-elections scenario and the progress of the 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 losing 0.01% at 1.1812 and faces the next support at 1.1779 (weekly low Nov.10) followed by 1.1709 (Fibo level of the 2017-2018 rally) and finally 1.1602 (monthly low Nov.4). On the other hand, 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).