EUR/USD bid above 1.1200 on trade, looks to US data
|- Risk-on sentiment pushes spot beyond 1.1200.
- US-China positive news sustains the upbeat mood.
- US ADP, Non-farm Payrolls coming up next on the docket.
EUR/USD has managed to regain the 1.1200 handle and above on the back of renewed optimism surrounding the risk-associated space.
EUR/USD looks to data, risk
After six consecutive daily pullbacks, the pair has now recovered the smile and attempts to extend the rebound further north of the key barrier at 1.1200 the figure.
Auspicious news from the US-China trade front noted both parties have apparently left behind key issues and will now move on ways to enforce an eventual trade agreement.
In the meantime, weakness around the shared currency following recent disappointing results from fundamentals in Euroland looks somewhat mitigated for the time being, all helped by the better mood in riskier assets.
In the data space, Retail Sales in Euroland are coming up next followed by the US labour market report from ADP and the ISM Non-manufacturing for the month of March.
What to look for around EUR
EUR remains under heavy pressure following poor results in Euroland, somehow confirming that the slowdown in the region could stay for longer as well as the patient stance from the ECB. Against the backdrop of souring risk-appetite trend, the greenback should emerge stronger and is expected to keep weighing on spot for the time being. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be on the potential increase of the populist option among voters.
EUR/USD levels to watch
At the moment, the pair is gaining 0.15% at 1.1221 and a break above 1.1250 (high Apr.1) would target 1.1280 (21-day SMA) en route to 1.1338 (200-week SMA). On the other hand, immediate contention emerges at 1.1183 (low Apr.2) followed by 1.1176 (low Mar.7) and finally 1.1118 (monthly low Jun.20 2017).
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