“¢ Overnight ECB headlines continue to underpin the shared currency.
“¢ Persistent USD selling bias remains supportive of the positive momentum.
“¢ US economic data eyed for some impetus ahead of the FOMC meeting minutes.
The EUR/USD pair maintained its strong bid tone and might now be looking to attempt a fresh move beyond the 1.1700 handle ahead of the US macro data.
Overnight Bloomberg report, saying that some ECB member sees end-2019 rate hike as ‘too late’, now seems to have lifted the chances of a September move to 80% and continued underpinning the shared currency.
This coupled with persistent selling bias surrounding the US Dollar, which has failed to find any respite from a goodish pickup in the US Treasury bond yields, remained supportive of the pair’s ongoing up-move to over one-week tops.
It, however, remains to be seen if the pair is able to sustain/build on the positive momentum as investors now look forward to US economic docket, featuring the release of ADP report on the US private sector employment and the ISM non-manufacturing PMI for some fresh impetus.
This along with the release of latest FOMC meeting minutes might further contribute towards infusing some fresh volatility ahead of Friday’s keenly watched US monthly jobs report (NFP).
Technical levels to watch
Any subsequent up-move beyond the 1.1720 level (June 26 high) could get extended but is likely to face stiff resistance near the 1.1755-60 region. On the flip side, 1.1655-50 area now seems to have emerged as an immediate support, which if broken might turn the pair vulnerable to slide back towards retesting sub-1.1600 level.
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