- The bid tone in the pair remains unchanged above 1.1300.
- The greenback struggles to reclaims the 97.00 handle.
- US-China talks, NY Empire State index next of relevance.
The buying interest around the European currency remains well and sound at the beginning of the week, prompting EUR/USD to keep the trade above the key 1.1300 the figure for the time being.
EUR/USD looks to trade, data
Spot is adding to last week’s positive performance and is looking to consolidate the rally further north of the recently broken barrier at 1.1300 the figure.
Positive developments from the Chinese economy in past sessions coupled with auspicious results from the industrial sector in Euroland helped investors to forget, at least for a while, about the ongoing slowdown in the region and the neutral/dovish stance from the ECB.
Following the ECB meeting, EUR speculative net shorts climbed to the highest level since earlier December 2016 during the week ended on April 6, according to the latest CFTC report.
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 generalized poor results in 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 0.12% at 1.1311 and a breakout of 1.1338 (200-week SMA) would target 1.1345 (100-day SMA) en route to 1.1419 (high Feb.14). On the downside, immediate support emerges at 1.1275 (21-day SMA) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7).
Share
