- The pair comes up after recording fresh 2019 lows on Thursday.
- The greenback comes under selling pressure following recent tops.
- German IFO results next of relevance in Euroland.
After bottoming out in fresh yearly lows in the 1.1290/85 band on Thursday, EUR/USD managed to attract some buying attention and has already regained 1.1300 the figure and above.
EUR came under heightened downside pressure following the dovish message from President Draghi at the ECB event on Thursday. Despite the decision on rates by the central bank was largely anticipated, the re-emergence of downside risks for the economic outlook in the region prompted sellers to quickly return to the markets, driving spot lower.
Today’s calendar in the euro bloc highlights the publication of the German IFO indicator. Across the pond, Durable Goods Orders and New Home Sales are also due.
What to look for around EUR/USD
Thursday’s revision lower in risks facing the economic outlook in the region will surely increase the relevance of upcoming data, all under the close scrutiny of the ECB. In addition, concerns over the US-China trade deal and the potential slowdown in the global economy remain key drivers for investors’ sentiment in the next months. On the political side, the upcoming EU parliamentary elections in May should start picking up some attention in the near term, while the social scenario in France and developments from the populist government in Italy should also add to the prevailing cautiousness among market participants.
EUR/USD levels to watch
At the moment, the pair is gaining 0.15% at 1.1322 facing the next hurdle at 1.1356 (23.6% Fibo of the September-November drop) seconded by 1.1375 (55-day SMA) and finally 1.1410 (10-day SMA). On the other hand, a breach of 1.1289 (2019 low Jan.24) would target 1.1269 (monthly low Dec.14 2018) en route to 1.1215 (2018 low Nov.12).
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