- The pair fades the initial spike to 1.1620.
- The greenback finds contention in the 94.70 region.
- Fedspeak, US-China, to drive sentiment near term.
After climbing to session tops in the 1.1620 region earlier in the day, EUR/USD has now faded that spike and returned to the 1.1600 neighbourhood amidst some recovery in the greenback.
EUR/USD looks to Fedspeak, focused on Sintra
Spot alternates gains with losses at the beginning of the week amidst an also erratic performance in the greenback and with US-China trade issues dominating the sentiment so far.
Also weighing on EUR appear recent results from Italian polls noting far right Lega Nord taking the lead over 5-Star Movement.
Later in the day, EUR should remain under scrutiny as President Draghi speaks at the ECB Forum in Sintra (Portugal). Investors, however, expect his tone to fall in line with the recent press conference post-ECB meeting last Thursday, leaving practically no room for surprises.
EUR/USD levels to watch
At the moment, the pair is losing 0.03% at 1.1607 and a breakdown of 1.1543 (low Jun.15) would target 1.1508 (2018 low May 29) en route to 1.1479 (low Jul.20 2017). On the flip side, the next hurdle aligns at 1.1624 (high Jun.18) seconded by 1.1698 (21-day sma) and finally 1.1714 (10-day sma).
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