Search ForexCrunch
  • EUR/USD trims gains and approaches the 1.09 mark.
  • The dollar gives away initial gains and challneges 100.00.
  • The FOMC Minutes coming up next on the US docket.

Following an early dip to lows near 1.0830, EUR/USD has managed to regain some buying interest and trimmed part of those losses to the 1.0890 area at the time of writing.

EUR/USD now looks to Eurogroup, COVID-19

EUR/USD came under some selling pressure after failing to extend Tuesday’s recovery further north of the 1.0930 area despite reversing six consecutive daily pullbacks.

It is worth recalling that the single currency met some selling pressure on Wednesday after the Eurogroup meeting failed on Tuesday to clinch a deal regarding the implementation of joint issuance of new debt aimed to help those countries most affected by the COVID-19 pandemic. Another meeting, however, is expected to be held on Thursday.

Nothing expected data wise in Euroland, while the publication of the FOMC Minutes will take centre stage later in the NA session.

What to look for around EUR

The single currency has regained the smile on Tuesday following the negative start of the week, as markets have improved their sentiment on the back of positive headlines from the COVID-19 pandemic, especially in Spain and Italy, where infected cases and deaths appear to have left the worst behind. On the macro view, recent better-than-expected results in fundamentals in both Germany and the broader Euroland opened the door to some respite in the prevailing downtrend, although the underlying stance still remains well on the negative side. In the very near term, however, headlines from the upcoming Eurogroup meeting (Thursday) are seen driving the mood around the euro.

EUR/USD levels to watch

At the moment, the pair is losing 0.09% at 1.0881 and faces immediate contention at 1.0768 (monthly low Apr.6) seconded by 1.0635 (2020 low Mar.20) and finally 1.0569 (monthly low Apr.10 2017). On the upside, a break above 1.0926 (weekly high Apr.7) would target 1.0979 (55-day SMA) en route to 1.0992 (monthly low Jan.29).