- The pair remains under pressure in the mid-1.1300s.
- DXY up smalls but constrained to the 96.30 region so far.
- Consumer Confidence by the European Commission coming up next.
EUR/USD keeps the trade within familiar ranges so far this week, all against the backdrop of a broad-based consolidation in the rest of the global assets.
EUR/USD looks to data, ECB
Spot is alternating gains with losses around the 1.1350 region so far this week, meeting support in the 1.1330 area while gains remain capped by the 55-day SMA in the 1.1380 zone.
Investors’ attention remain on the resurgence of some concerns over the US-China trade dispute, all ahead of the key meeting between both parties next week in Washington.
Data wise in Euroland, the European Commission is expected to publish its preliminary gauge of Consumer Confidence in the region for the month of January.
What to look for around EUR/USD
As we mentioned, EUR is expected to remain under scrutiny ahead of the ECB meeting due on Thursday, where attention will be on the Council’s views on the ongoing slowdown in the euro bloc. Additionally, US-China trade talks have come to the fore once again, whereas in the longer run, fundamentals in the region should remain in centre stage along with the upcoming EU parliamentary elections (May), Italian politics and French social unrest.
EUR/USD levels to watch
At the moment, the pair is down 0.01% at 1.1358 facing the next support at 1.1336 (low Jan.22) followed by 1.1323 (200-week SMA) and finally 1.1306 (2019 low Jan.3). On the flip side, a break above 1.1379 (55-day SMA) would target 1.1416 (21-day SMA) en route to 1.1442 (38.2% Fibo of the September-November drop).
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