EUR/USD: Bulls target 1.0800 ahead of G20

The EUR/USD pair extends its side-trend into early Europe, as the bulls continue its consolidation phase near five-week tops reached earlier today 1.0774.

The major rallied after hawkish remarks from the ECB governing council member Ewald Nowotny rescued the EUR bulls from a dip just ahead of 1.07 handle. ECB policymaker Nowotny said that the ECB could also hike the deposit rate, heading away from the easy monetary policy in a different manner than the Fed.

The spot also took support from the pro-Europe outcome of the Dutch elections, as traders cheer Wilder’s fall in Dutch elections decreased the odds of French Le Pen’s election win, which eased somewhat political concerns surrounding the Eurozone.

However, higher treasury yields combined increased cautiousness ahead of today’s G20 meeting, kept a lid on the prices. Looking ahead, in absence of economic events from the Euro land, the major will take cues from the broader market sentiment, in the wake of the G20 meeting, and US consumer sentiment and LMCI data due later today.

EUR/USD Technical Levels   

Omkar Godbole, Analyst at FXStreet noted, “A break above the psychological level of 1.08 (inverse head and shoulder neckline) would expose 1.0829 (Feb 2 high) and 1.0873 (Dec 8 high). On the other hand, a breakdown of support at 1.0762 (session low) would open up downside towards 1.07 (zero figure), under which a major support is seen at 1.0645 (50-DMA).”