- The pair moves closer to the 1.1300 barrier on softer Dollar.
- The greenback remains on the defensive around 97.00.
- EMU Industrial Production figures next on the calendar.
The shared currency is extending the firm note at the end of the week and is lifting EUR/USD to fresh tops in the vicinity of 1.1300 the figure.
EUR/USD up on USD-selling, looks to data
The pair is extending its gradual upside so far this week, leaving behind the dovish message from the ECB event on Wednesday and regaining some fresh traction on the back of the persistent selling mood surrounding the buck.
The favourable atmosphere around the risk-associated complex is also supporting the mood in the European currency, although a test/surpass of the critical barrier at 1.1300 the figure seems to need a stronger catalyst for the time being.
Moving forward, Industrial Production in Euroland for the month of February will be the sole release later in the session ahead of Import/Export Prices and the U-Mich index due across the pond.
What to look for around EUR
Positive sentiment in the risk-associated complex continues to support the shared currency amidst a persistent down move in the greenback. The ECB reiterated the risks to the economic outlook in the region remains tilted to the downside, a view reinforced by poor results from fundamentals in past weeks. That said, the ‘patient-for-longer’ stance from the ECB could be among us for longer than expected. Against this backdrop, the neutral stance from the Fed and occasional deterioration in the risk-on mood should lend support to the buck and thus limit the upside in spot. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections and the swelling presence of the populist movement among the voting countries.
EUR/USD levels to watch
At the moment, the pair is gaining 0.30% at 1.1285 and a breakout of 1.1294 (high Apr.10) would target 1.1315 (55-day SMA) en route to 1.1338 (200-week SMA). On the downside, immediate support emerges at 1.1241 (10-day SMA) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7).
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