- The pair rebounds to the 1.1370 region, fresh tops.
- The greenback comes under further pressure near 96.30.
- Focus remains on trade, Fed’s Powell, data.
The shared currency keeps the bid tone intact so far today and is now lifting EUR/USD to fresh multi-day highs around 1.1370.
EUR/USD focused on trade, data
Spot is trading on a positive fashion so far today, reverting three consecutive daily pullbacks and regaining the upper-1.1300s on the back of the continuation of the upbeat sentiment in the risk-associated complex.
The demand for the riskier assets has been bolstered further in past hours after President Trump delayed the US tariffs on Chinese products, adding that a new meeting with China’s Xi Jinping is on the table at some point in March.
Noteworthy in this week’s calendar will be key preliminary German and EMU inflation figures are due in the second half of the week, while Chief Powell will testify before the Senate Banking panel (Tuesday) and the House Financial Services Committee (Wednesday).
What to look for around EUR
The European currency continues to look to developments from the US-China trade talks for near term direction, while the effervescence on the US-EU trade front appear somewhat relegated so far. Recent poor prints from the euro docket and a ‘reality check’ from the ECB minutes appear to have exacerbated concerns over the deterioration in the bloc’s fundamentals and casted further shadows over the probability of any action on rates from the ECB later this year.
EUR/USD levels to watch
At the moment, the pair is gaining 0.28% at 1.1362 facing the next up barrier at 1.1382 (55-day SMA) seconded by 1.1392 (100-day SMA) and finally 1.1442 (38.2% Fibo of the September_November drop). On the other hand, a break below 1.1317 (10-day SMA) would target 1.1275 (low Feb.19) en route to 1.1234 (2019 low Feb.15).
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