EUR/USD moves to daily highs above 1.1800

The demand for the single currency keeps the recovery well and sound so far on Monday, now lifting EUR/USD to the area of session peaks above 1.1800 the figure.

EUR/USD rebounds from 1.1730

The pair has so managed to reclaim the key barrier at the 1.1800 handle during the European morning after bottoming out in the 1.1730 area on Friday.

It is worth mentioning that spot tested fresh lows on Friday in response to the solid report from the US labour market for the month of July, which saw the economy creating more jobs than initially forecasted and the unemployment rate ticking lower to 4.3%.

In the meantime, the pair seems to face a period of consolidation in the near term, while the idea of an interim top beyond 1.19 the figure seen last week continue to gather traction among market participants. However, the likelihood of ECB ‘tapering’ in the next months, dwindling speculations of another move by the Fed in H2 and market sentiment in general continue to add to the case for a stronger EUR in the upcoming months.

On the other hand, EUR futures markets allow the possibility of a correction lower in the near term, while positioning from the latest CFTC report showed net longs retreated to 4-week lows in the week to August 1.

Nothing scheduled data wise in Euroland today, while the Fed’s labor market conditions index and speeches by FOMC’s dovish governors J.Bullard (St. Louis Fed, 2019 voter) and N.Kashkari (Minneapolis Fed, voter) are due across the pond.

EUR/USD levels to watch

At the moment, the pair is advancing 0.27% at 1.1803 facing the next hurdle at 1.1893 (high Aug.4) seconded by 1.1909 (2017 high Aug.2) and finally 1.2040 (2012 low Jul.24). On the other hand, a breakdown of 1.1727 (low Aug.4) would target 1.1638 (21-day sma) en route to 1.1611 (low Jul.26).