EUR/USD challenging tops around 1.0560, Trump eyed

The single currency keeps the constructive tone well and sound on Wednesday, taking EUR/USD to the 1.0560/65 band, the area of daily highs.

EUR/USD attention to Trump

The pair is navigating the mid-1.0500s amidst a generalized absence of direction in the global markets, with quite decent support around the 1.0500 neighbourhood while the upside remains so far capped by the string resistance area around 1.0630.

Spot is expected to remain in a consolidative theme in the very near term in light of today’s press conference by president-elect Donald Trump, where investors hope to get more details on the potential policies under the new administration.

As strategists at TD Securities put it, “…If Trump focuses on the growth agenda (tax reform and deregulation) while steering away from talk of a border tax, conflicts of interest and foreign affairs, risk markets are likely to react positively…”.

Further data in the US docket will see the official weekly report on crude oil supplies by the DoE.

EUR/USD levels to watch

The pair is now gaining 0.02% at 1.0558 facing the next hurdle at 1.0627 (high Jan.10) followed by 1.0654 (spike Dec.30) and finally 1.0658 (55-day sma). On the other hand, a breakdown of 1.0508 (low Jan.9) would target 1.0474 (20-day sma) en route to 1.0387 (low Jan.4).