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EUR/USD inches higher to fresh daily highs near 1.1220

  • The pair manages to rebound from 2019 lows near 1.1180.
  • The greenback loses some momentum following yearly tops.
  • US Non-farm Payrolls next of relevance in the calendar.

It seems the single currency has found some respite amidst the broader bearish stance and is now motivating EUR/USD to extend the breakout of the critical 1.1200 handle.

EUR/USD looks to US data

Spot has so far managed to leave behind the area of 2019 lows around 1.1180 and it has retaken levels beyond 1.1200 the figure, all against the backdrop of some weakness surrounding the buck.

In the meantime, investors continue to digest the recent ECB dovish message, which left the European currency more vulnerable to extra retracements in the short-term horizon.

Moving forward, the upcoming Non-farm Payrolls are expected to dictate the mood in the global markets and will surely put the ongoing recovery in the pair to the test.

What to look for around EUR

The sentiment around the shared currency is expected to remain under heavy pressure as market participants continue to adjust to the fresh dovish stance from the ECB and the prospects of no hikes at least until Q3-Q4 2020. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be on the potential increase of the populist option among members.

EUR/USD levels to watch

At the moment, the pair is gaining 0.20% at 1.1215 and a breakout of 1.1314 (21-day SMA) would target 1.1375 (55-day SMA) en route to 1.1419 (high Feb.28). On the other hand, the next support aligns at 1.1176 (2019 low Mar.7) followed by 1.1118 (monthly low Jun.20 2017) and finally 1.1021 (high May 8 2017).

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