EUR/USD faded the spike to 1.1970

After climbing to the 1.1970 region in early trade, EUR/USD has now trimmed part of that advance and is hovering over the mid-1.1900s.

EUR/USD bid on USD-selling

The selling bias around the greenback has given extra legs to the pair’s 3-day upside so far, although sellers appear to be clustered in the 1.1970 region capping gains for the time being.

Spot has also found support in earlier comments by A.Hansson, Governor of the Bank of Estonia and member of the ECB’s Governing Council, who advocated for a gradual normalization of the monetary conditions in the region. In addition, Hansson argued that the ECB should also make decisions not only on asset purchases, but also on changing the forward guidance and recalibrating the reinvestment policy.

On another direction, EUR speculative net longs have retreated to 4-week lows during the week ended on September 12, according to the latest CFTC report.

Data wise across the pond, TIC Flows and the NAHB index are only due.

EUR/USD levels to watch

At the moment, the pair is up 0.03% at 1.1944 and a break above 1.1970 (high Sep.18) would target 1.2041 (high Sep.11) and finally 1.2092 (2017 high Sep.6). On the flip side, the immediate support aligns at 1.1910 (10-day sma) followed by 1.1839 (5-month support line) and finally 1.1837 (low Sep.14).