EUR/USD flirting with tops above 1.16

• Spot manages to regain the 1.16 handle post-Asian session.
• USD offered on doubts over the US tax reform.
• ECB-speak, German trade balance next on the docket.

The single currency is gathering traction early in the European morning, lifting EUR/USD to the area of daily peaks above the critical 1.1600 handle.

EUR/USD focus on ECB-speak, US Senate

The pair is advancing at a glacial pace so far this week, posting gains for the second session in a row and advancing tepidly towards the 1.1600 neighbourhood.

On the other side, the greenback remains offered against the backdrop of the renewed skepticism over the tax reform sponsored by the White House. In this regard, Republicans are expected to unveil further detail later in the day.

Recent Democrats’ win in state elections have added to the already growing doubts over expectations of an implementations of Trump’s tax reform plans by year-end, all weighing down on the buck.

On the data front, German trade balance figures for the month of October are due ahead of speeches by ECB’s Mersch, Coeure, Constancio and Lautenschlaeger.

Across the pond, initial claims and wholesale inventories are only due.

EUR/USD levels to watch

At the moment, the pair is up 0.11% at 1.1608 and a breakout of 1.1619 (10-day sma) would open the door to 1.1692 (high Nov.3) and then 1.1705 (21-day sma). On the flip side, the next support emerges at 1.1555 (low Nov.7) seconded by 1.1448 (high Jun.30) and finally 1.1280 (200-day sma). On the upside, Furthermore, FXStreet’s Technical Confluences Indicator (TCI) is noting an important resistance zone in the vicinity of 1.1620, where sit a pivot point, the 5-day sma, recent highs and a Fibo retracement.