- EUR/USD keeps the buying interest well and sound near 1.1170.
- Daily upside in the pair met resistance near 1.1190.
- The generalized risk-on sentiment bolsters the upside mood in the pair.
Another session, another uptick in EUR/USD. In fact, the pair climbed to the area just below 1.1200 the figure managing to record fresh 3-month tops.
EUR/USD approaches 1.1200
EUR/USD posted gains in the last six sessions on the back of the renewed and quite strong resurgence of the selling bias around the dollar.
Indeed, investors’ appetite for riskier assets has been growing pari passu with rising hopes of a faster-than-expected return to some sort of normality in economies on both sides of the Atlantic. On this issue, the ECB is forecasted to pump in extra stimulus at this week’s event (Thursday).
Now on the buck-side, rising civil unrest in the US remain in centre stage while market participants continue to factor in the likeliness that President Trump could send in the military to allay the protests.
What to look for around EUR
EUR/USD is flirting with the key resistance area around 1.1200 in the first half of the week. As usual, USD-dynamics and US-China trade effervescence keep driving the sentiment in the global markets, while extra oxygen to the pair is also arriving from the gradual return to the economic normality in Europe and recent news of an aid package proposed by the European Commission. Further support for the euro lies as well in the solid position of the region’s current account.
EUR/USD levels to watch
At the moment, the pair is advancing 0.35% at 1.1173 and a break above 1.1187 (weekly/monthly high Jun.2) would target 1.1186 (61.8% Fibo of the 2017-2018 rally) en route to 1.1239 (monthly high Dec.31 2019). On the other hand, immediate contention emerges at 1.1010 (200-day SMA) followed by 1.0897 (55-day SMA) and finally 1.0870 (weekly low May 26).
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