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  • EUR/USD off 3-month tops, back near 1.1200.
  • German, EMU Services PMI came in above estimates.
  • US ISM Non-Manufacturing next on tap in the calendar.

After recording fresh 3-month tops near 1.1230, EUR/USD has lost some upside momentum and it has now returned to the 1.1200 neighbourhood.

EUR/USD propped up by risk-on mood

Sellers in EUR/USD turned up around daily highs in the 1.1225/30 band, just ahead of the December 2019 tops near 1.1240. The ongoing knee-jerk, however, appears to have met decent contention in the 1.1200 neighbourhood for the time being.

As usual, the softer tone in the greenback continues to sustain the vigorous move up in the pair as well as in the rest of the riskier assets.

In the calendar, better-than-expected final Services PMIs in the euro area for the month of May has also lent support to the single currency. Across the pond, the US private sector shed nearly 2.8 million jobs during last month, as per the ADP report. Next on the docket will be the ISM Non-Manufacturing and April’s Factory Orders.

What to look for around EUR

EUR/USD has move above the 1.1200 mark against the backdrop of the solid mood in the risk universe. As usual, the weakness in the dollar and the positive prospects following the gradual re-opening of economies around the world keep underpinning the investors’ preference for riskier assets. In addition, Germany is planning to pump an extra €100 billion into its economy, which adds to the recently proposed €750 billion aid packaged by the European Commission (EC). 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 0.24% at 1.1195 and a break above 1.1227 (weekly/monthly high Jun.3) would target 1.1239 (monthly high Dec.31 2019) en route to 1.1391 (monthly high Jun.13 2019). On the other hand, immediate contention emerges at 1.1011 (200-day SMA) followed by 1.0902 (55-day SMA) and finally 1.0870 (weekly low May 26).