EUR/USD keeps pushing higher, 1.18 closer

The single currency remains on recovery-mode so far on Tuesday, now lifting EUR/USD to the upper end of the range beyond 1.1770.

EUR/USD up on offered USD

Spot managed to revert the initial drop to fresh multi-week lows in sub-1.1700 levels and advance to the area of session peaks in the vicinity of 1.1780 following a shift in the sentiment around the buck.

In fact, led by softer yields in the US 10-year benchmark, the US Dollar Index dropped from the area of tops in the 94.00 neighbourhood to the current 93.30 zone, where appears to have found some support for the time being.

The pair, in the meantime, is recovering part of the ground lost at the beginning of the week, including an earlier test of sub-1.1700 levels, area last visited in mid-August. However, EUR is expected to remain under pressure in light of the upcoming ECB minutes (Thursday) and US non-farm payrolls (Friday).

Data wise in Euroland, producer prices came in on a positive note, rising 0.3% MoM and 2.5% on a yearly basis.

EUR/USD levels to watch

At the moment, the pair is gaining 0.27% at 1.1764 and a breakout of 1.1827 (10-day sma) would target 1.1894 (21-day sma) en route to 1.2006 (high Sep.22). On the flip side, the immediate support aligns at 1.1696 (low Oct.3) followed by 1.1662 (low Aug.17) and finally 1.1579 (100-day sma).