EUR/USD looks offered near 1.19 ahead of ZEW, US CPI
FXStreet News

EUR/USD looks offered near 1.19 ahead of ZEW, US CPI

  • EUR/USD trades on the defensive near the 1.19 hurdle.
  • German, EMU ZEW survey next of note in the domestic docket.
  • US inflation figures will be in the limelight later in the NA session.

The single currency now looks under some mild selling pressure and drags EUR/USD back to the sub-1.1900 area in the wake of the opening bell in the Old Continent.

EUR/USD focused on upcoming data

EUR/USD keeps navigating the upper end of the recent range, although a sustainable breakout of the 1.1900 hurdle still remains elusive for EUR-bulls.

In the meantime, the pair keeps tracking dollar dynamics, which in turn looks to the performance of US yields, while investors’ attention seems to have now gyrated to the economic recovery in Europe amidst the improved pace of the vaccination campaign.

Data wise in Euroland, the ZEW survey will shed a light on the Economic Sentiment in both Germany and the broader euro area for the current month.

Across the Atlantic, the March’s inflation figures tracked by the CPI wil be in the centre of the debate seconded in relevance by the NFIB Index and the API’s usual weekly report on crude inventories.

Additionally, FOMC’s Daly, George and Bostic are all due to speak.

What to look for around EUR

EUR/USD puts the 1.1900 level to the test, although the lack of a strong catalyst prevents the pair to extend the move further north. The near-term outlook for the pair, however, looks improved on the back of rising hopes of a sustained recovery in the Old Continent now that the vaccine rollout appears to have gained some serious pace.

Key events in the euro area this week: German, EMU ZEW survey (Tuesday) – Industrial Production, Lagarde speech (Wednesday) – German final March CPI (Thursday) – Eurogroup meeting, EMU final CPI (Friday).

Eminent issues on the back boiler: Asymmetric economic recovery in the region. Sustainability of the pick-up in inflation figures. Progress of the vaccine rollout. Probable political effervescence around the EU Recovery Fund.

EUR/USD levels to watch

At the moment, the index is losing 0.06% at 1.1902 and a breach of 1.1704 (2021 low Mar.31) would target 1.1602 (monthly low Nov.4) en route to 1.1570 (2008-2021 support line). On the upside, the next up barrier is located at 1.1927 (weekly high Apr.8) followed by 1.1989 (weekly high Mar.11) and finally 1.2000 (psychological level).

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.