- The pair trades without direction above the 1.1200 handle.
- The greenback remains anaemic in the mid-97.00s.
- FOMC meeting, ISM manufacturing in the limelight today.
After three consecutive daily advances, EUR/USD now seems to have met some decent resistance in the low-1.1200s ahead of key events later today.
EUR/USD focused on data and Fed
Spot regained around a cent since last week’s 2019 lows in the proximity of 1.1100 the figure on the back of renewed and persistent downside pressure surrounding the greenback.
In addition, Tuesday’s positive results from the euro docket saw advanced GDP figures in Euroland and flash German inflation figures both surprising to the upside and therefore lending extra legs to the pair’s rally.
Later in the session and with many markets in the Old Continent closed due to the Labour Day holiday, the FOMC meeting will grab all the attention along with the manufacturing gauge by the ISM and the jobs report by ADP.
What to look for around EUR
Recent data in Euroland and Germany allowed market participants to believe that some healing process could be under way in the region amidst the ongoing slowdown. However, this scenario needs confirmation in the next months, while the current ‘neutral/dovish’ stance from the ECB is expected to persist for the reminder of the year and probable H1 2020. The broad-based risk-appetite trends and USD-dynamics are posed to rule the sentiment surrounding the European currency for the time being, all in combination with the onoging US-China trade dispute and potential US tariffs on EU products. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections in late May, as the populist option in the form of the far-right and the far-left movements appears to keep swelling among voting countries.
EUR/USD levels to watch
At the moment, the pair is gaining 0.01% at 1.1215 and a break above 1.1232 (21-day SMA) would target 1.1277 (55-day SMA) en route to 1.1323 (high Apr.17). On the other hand, immediate support emerges at 1.1109 (2019 low Apr.26) seconded by 1.0839 (monthly low May 11 2017) and finally 1.0569 (monthly low Apr.10 2017).
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