- EUR/USD starts the week on a strong note near 1.1270.
- German flash inflation figures coming up next in the docket.
- US Pending Home Sales and Fedspeak of note across the ocean.
The single currency appears to have left behind part of the recent pessimism and is now lifting EUR/USD to new daily highs in the vicinity of 1.1270, although losing some momentum afterwards.
EUR/USD focused on data, coronavirus
After three consecutive daily pullbacks, EUR/USD has opened Monday’s session with decent gains well above the 1.1200 mark amidst some correction in the greenback.
Investors, in the meantime, continue to gauge the pace of the economic recovery in the Old Continent vs. the recent pick-up in coronavirus cases and some encouraging results from fundamentals in the euro region. Against this backdrop, a cautious tone and alternating risk appetite trends appear to be dominating the global trade for the time being.
Later in the docket, the preliminary inflation figures in Germany for the month of June will be the salient event. In the NA session, Pending Home Sales are due in the first turn seconded by speeches by FOMC’s M.Daly and J.Williams.
What to look for around EUR
EUR/USD appears to have met some important resistance in the 1.1350 region in recent days. Investors continue to look to the gradual return to some sort of economic normality in Europe while closely following new COVID-19 cases around the world. The constructive view in the euro, however, remains well sustained by the gradual and relentless re-opening of economies in Europe and by the ongoing monetary stimulus (announced by the ECB, Germany and the European Commission). On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.24% at 1.1243 and a breakout of 1.1266 (high Jun.29) would target 1.1348 (weekly high Jun.23) en route to 1.1422 (monthly high Jun.10). On the downside, the next support lines up at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1032 (200-day SMA).
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