EURUSD HITS 3-MONTH HIGH
The depreciation of the dollar assets gained momentum after the weak macroeconomic data announced in the USA. While the US economy grew below expectations with 33.1 percent on a quarterly basis in the third quarter, weekly unemployment benefits in the USA exceeded the expectations and reached 778K. Durable goods orders in the US rose 1.3 percent in October, exceeding expectations. Personal income increased by 0.5 percent in October, while personal expenses pointed to a 0.7 percent contraction in the same period. Thus, while pricing below the level of 92.0 occurred in the dollar index, an upward movement of up to 1.1930 occurred in the EURUSD parity. In the Fed's latest meeting minutes announced on Wednesday, it was underlined that financial conditions change very little and action can be taken if necessary. US markets were closed yesterday for Thanksgiving. Today, the markets are calm in terms of data flow.
If we look at the developments in the Euro Zone, German Chancellor Angela Merkel stated that the Kovid-19 restrictions will continue until December 20, but this can be extended until the beginning of January if necessary. Merkel also made a statement that the vaccine could arrive before Christmas. On the other hand, the European Union has approved the contract that will provide 160 million doses of the vaccine that Moderna company is developing against Covid-19.
Regarding the technical outlook of the EURUSD parity, if the returns from the 1.1940 level bring the prices below the 1.19 level in the pair, this level closes did not succeed. We follow the rises in EURUSD parity, which maintains its appearance above the 1.19 level, within the frame of 1.1950 and 1.20 resistance levels. In a possible downward attack, it is useful to consider 1.19 and 1.1850 support.