EUR/USD remains under pressure near 1.1200 ahead of IFO
|- The selling bias around the pair stays well and sound today.
- The greenback stays bid near 2019 highs on data, sentiment.
- German IFO is coming up next in the calendar.
The sentiment around the European currency remains vulnerable so far this week and is now forcing EUR/USD to once again look to 1.1200 and below as the next target zone.
EUR/USD focused on German data
After bottoming out in the 1.1190 region on Tuesday, the pair somehow managed to regain the 1.1200 handle and a tad above soon afterwards, although the buying interest around the buck keeps the momentum in spot depressed.
Positive headlines from the US-China trade front did not help the pair either, as skepticism among investors appear firm despite the upcoming visit of US negotiators to Beijing next week.
In the meantime, the greenback keeps the firm note so far this week sustained by a change of heart in investors’ sentiment following Easter holidays, auspicious results in the US docket and solid earnings report in Wall Street.
Later in the day, the German IFO survey will be the salient event in the region.
What to look for around EUR
The broad-based risk-appetite trends are posed to rule the sentiment surrounding the European currency for the time being, while the onoging US-China trade dispute and potential deal expected to remain in centre stage in the next weeks. Recent weak results from key fundamentals in the region plus a now unlikely rebound in the activity in the second half of the year have added to the ongoing concerns that the slowdown in the region could last longer that expected and the ECB is therefore likely to remain ‘neutral/dovish’ for the foreseeable future (say until mid-2020?). On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections in late May, as the populist option in the form of the far-right and the far-left movements appears to keep swelling among voting countries.
EUR/USD levels to watch
At the moment, the pair is losing 0.11% at 1.1214 and faces initial contention at 1.1192 (low Apr.23) seconded by 1.1183 (low Apr.2) and finally 1.1176 (low Mar.7). On the upside, a breakout of 1.1245 (21-day SMA) would target 1.1290 (55-day SMA) en route to1.1323 (high Apr.17).
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