- The pair posts moderate gains and trades around 1.1800.
- The greenback rebounds from earlier lows, around 93.50.
- FOMC, ECB, Trump-Kim meeting to drive sentiment this week.
The softer tone in the greenback has sustained the rebound in EUR/USD from Friday’s lows in the 1.1730 region to the current 1.1800 neighbourhood, where it is now looking to consolidate.
EUR/USD rangebound likely ahead of key events
Spot is navigating in the upper end of the recent range amidst the renewed offered bias around the buck, all in response to the sour mood following the failed G7 meeting on Friday-Saturday.
EUR also found support after newly appointed Italian finmin G.Tria said over the weekend that the country is not contemplating leaving the euro bloc, while he also advocated for a reduction of the debt/GDP ratio.
Looking ahead, the pair will look to the FOMC and ECB meetings for directions, while geopolitics will also be in centre stage in light of the Trump-Kim meeting tomorrow.
On the positioning front, EUR speculative net longs retreated to the lowest level since December 19 2017 during the week ended on June 5 and according to the latest CFTC report.
EUR/USD levels to watch
At the moment, the pair is gaining 0.30% at 1.1804 facing the next hurdle at 1.1840 (high Jun.7) followed by 1.1854 (38.2% Fibo of 1.2413-1.1508) and finally 1.1998 (high May 14). On the other hand, a break below 1.1726 (low Jun.8) would target 1.1712 (10-day sma) en route to 1.1617 (low Jun.1).
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