EUR/USD moves to fresh tops just below 1.1200
|- EUR/USD reverses the initial pessimism and reaches 1.1180/85.
- The broad-based risk-on sentiment dominates markets.
- Absence of data releases leaves the attention to the risk trends.
The upbeat momentum around the shared currency remains well and sound so far on Tuesday and is lifting EUR/USD to fresh 3-month peaks in the 1.1180/85 band.
EUR/USD focused on risk appetite
EUR/USD is extending the rally for the sixth consecutive session on Tuesday, managing to regain the upper-1.1100s and shifting the focus to the key barrier at 1.1200 the figure.
The generalized better sentiment in the riskier assets keeps weighing on the dollar and generates extra wings to the pair, which also remains underpinned by the relentless progress in the re-opening of the economy in Europe.
Data wise in Euroland, the unemployment in Spain increased by 26.6K during May, below forecasts and markedly lower than April’s nearly 283K gain.
There are no data releases across the pond other than the API’s weekly report on US crude oil stockpiles.
What to look for around EUR
EUR/USD is flirting with the key resistance area around 1.1200 in the first half of the week. As usual, USD-dynamics and US-China trade effervescence keep driving the sentiment in the global markets, while extra oxygen to the pair is also arriving from the gradual return to the economic normality in Europe and recent news of an aid package proposed by the European Commission. 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 0.38% at 1.1177 and a break above 1.1184 (weekly/monthly high Jun.2) would target 1.1186 (61.8% Fibo of the 2017-2018 rally) en route to 1.1239 (monthly high Dec.31 2019). On the other hand, immediate contention emerges at 1.1010 (200-day SMA) followed by 1.0897 (55-day SMA) and finally 1.0870 (weekly low May 26).
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.