- The pair losses ground amidst the continuation on USD strength.
- The US Dollar Index stays sidelined just below the 95.00 handle.
- ECB’s President Draghi will speak at the Sintra Forum.
The demand for the single currency remains subdued at the beginning of the week, keeping EUR/USD under pressure in the vicinity of the 1.1600 handle.
EUR/USD looks to Draghi
The pair is attempting to consolidate in the lower bound of the recent range following the sharp pullback in the wake of the ECB meeting (Thursday) and some decent gains on Friday.
EUR is also deriving pressure from some effervescence in German politics, where Chancellor Merkel’s CDU is in the limelight on immigration issues. In addition, investors’ attention will be on the speech by President Draghi at the Sintra Forum (Portugal) later in the session.
On the USD-side, renewed tensions on the US-China front following US tariffs and Chinese retaliatory measures appear to have removed some tailwinds from the recent upbeat momentum in the buck.
On the positioning front, EUR speculative net longs retreated to the lowest level since December 19 2017 on the week to June 12, according to the latest CFTC report.
In the data space, the already mentioned Sintra Forum should grab all the attention later today. Across the pond, the NAHB index will be the sole release seconded by speeches by Atlanta Fed R.Bostic (voter, centrist) and New York Fed W.Dudley (permanent voter, centrist).
EUR/USD levels to watch
At the moment, the pair is losing 0.21% at 1.1586 and a breakdown of 1.1543 (low Jun.15) would target 1.1508 (2018 low May 29) en route to 1.1479 (low Jul.20 2017). On the flip side, the next hurdle aligns at 1.1617 (low Jun.1) seconded by 1.1698 (21-day sma) and finally 1.1714 (10-day sma).
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