Quite apart from the fact that the political situation in Europe has been improving, EUR will need a support from the ECB on December’s meeting to prove its right to dominate, which is unlikely. Even the incoming inspiring data would hardly make the change its current stance and start tightening. It means, in this pair, a lot will depend on the USD-side.
Today is a challenging day for the USD traders. Donald Trump will try to persuade his party fellows to approve the tax-cut bill. If he succeeds, the dollar may investigate the higher levels, but the reaction will hardly be stable and prolonged, considering the dubious consequences of this possible reform for the economics.
We will also hear from the next Fed chairmen J. Powell speaking on the Senate floor. We already know he is going to hike rates at a moderate pace, but the details are important. So, the markets will try to understand the inner meaning of his speech. If he sounds more hawkish than expected, EUR/USD's decline will pick up the pace.
All in all, the markets will not rush into buying. The pair’s downward correction may lead it to its next target at 1.1850 and at 1.1820 afterwards.