- The pair remains depressed around 1.1550 on Thursday.
- The greenback advances further north of the 95.00 handle.
- The 2-day EU Summit starts later today. Focus will be on migration.
The single currency is alternating gains with losses in the second half of the week, taking EUR/USD to the mid-1.1500s ahead of the opening bell in Euroland.
EUR/USD focused on EU Summit
After two consecutive daily retracements, the pair is now looking for direction amidst a stronger greenback and cautiousness ahead of the upcoming EU Summit
In fact, the EU Summit kicks in today, with the main focus being the migration issue, Brexit, security and reforms in the region. According to analysts at Danske Bank: “Migration will be one of the hottest topics, especially following the pressure on Merkel from her CSU coalition partner to find an EU-wide solution to migration problems”.
Furthermore, market participants stay vigilant on the US-China-EU trade front, which remains the almost exclusive driver for the global markets’ direction.
Looking ahead, Spanish, Italian and German advanced inflation figures for the month of June are coming up next, seconded by several confidence/sentiment gauges in Euroland and the already mentioned EU Summit. Across the pond, the third revision of US Q1 GDP figures is expected along with Initial Claims.
EUR/USD levels to watch
At the moment, the pair is losing 0.03% at 1.1549 and a break below 1.1530 (low Jun.19) would target 1.1508 (2018 low May 29) en route to 1.1479 (low Jul.20 2017). On the other hand, the immediate resistance lines up at 1.1720 (high Jun.26) seconded by 1.1722 (23.6% Fibo of the April-May drop) and then 1.1853 (high Jun.14).
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