- EUR/USD resumes the upside and climbs to 1.0830.
- Focus remains on potential re-opening of the economy.
- US CPI figures will take centre stage later in the NA session.
The single currency is alternating gains with losses on ‘turnaround’ Tuesday, with EUR/USD managing briefly to test daily highs in the 1.0830 region.
EUR/USD now looks to US docket
After bottoming out in the vicinity of the 1.0780 region earlier in the session, EUR/USD has managed to regain some composure and climbed to the 1.0825/30 band, where some decent barrier has turned up.
In the meantime, market sentiment looks mixed as investors keep gauging the gradual re-opening of the economy on both sides of the Atlantic vs. the probability of a second wave of the coronavirus outbreak, particularly after cases infected cases increased in Germany, South Korea and China.
Later in the session, all the attention will be on the US inflation figures for the month of April seconded by Fedspeak.
What to look for around EUR
The euro appears to have met some decent contention in the 1.0780 so far this week in a context of poor results from fundamentals in the region and a broad-based consolidation theme. In the meantime, the attention in Euroland stays on the re-opening of some economies, while closely following developments from the coronavirus.
EUR/USD levels to watch
At the moment, the pair is gaining 0.08% at 1.0815 and a breakout of 1.0948 (55-day SMA) would target 1.1019 (weekly/monthly high May 1) en route to 1.1024 (200-day SMA). On the other hand, the next down barrier emerges at 1.0782 (weekly low May 6) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23).
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