EUR/USD firmer, advances to highs near 1.0580

The single currency is now picking up extra pace, lifting EUR/USD to the area of fresh daily peaks near 1.0580.

EUR/USD under pressure, focus on data, FOMC

Spot has managed to bounce off recent lows in the 1.0530/25 band following a now softer tone around the greenback at the beginning of the week.

Despite the ongoing correction higher, spot stays under pressure following last week’s dovish stance from the ECB at its meeting, while the prospects of a rate hike at the FOMC meeting on Wednesday also weighing on sentiment from the USD-side.

Nothing scheduled today in both Euroland and the US, although cautiousness is expected to grow bigger as we get closer to the FOMC gathering. In the meantime, the ZEW Survey in Germany and the euro area on Tuesday should give a glance of investors’ sentiment in the area.

From the speculators’ view, EUR net shorts have dropped to the lowest level since mid-October during the week ended on December 6.

EUR/USD levels to watch

The pair is now up 0.15% at 1.0572 facing the next resistance at 1.0629 (20-day sma) followed by 1.0798 (high Dec.5) and finally 1.0873 (spike post-ECB Dec.8). On the flip side, a breakdown of 1.0515 (low Nov.24) would target 1.0503 (2016 low Dec.5) en route to 1.0457 (2015 low Mar.16).