EUR/USD Forecast: recovery faces the next target above 1.1300
|- Better mood in the riskier assets lifted spot further north of the 1.1200 handle.
- EU Summit, Brexit negotiations and US-EU fresh trade dispute emerge as key drivers of the pair’s price action in the near/medium term.
The recent shift in markets’ sentiment towards the riskier assets lent extra legs to the single currency and pushed EUR/USD back above 1.1200 the figure, although the upside momentum appears to have run out of steam in the 1.1280 region, where aligns the 21-day SMA.
The upcoming combo of FOMC minutes, the ECB meeting and another chapter of the Brexit saga at the EU Summit would be key in determining the direction of the pair in the near term. Adding to the above - and still not priced in by market participants - another focus of trade conflict could arise if the US manage to impose tariffs on EU products, which could be considered as a prologue for tariffs on the more significant autos sector of the European Union.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.