EUR/USD stays consolidative near 1.1330, looks to Powell, data
|- EUR/USD alternates gains with losses around 1.1330.
- German Economic Sentiment improves to 63.4 in June.
- Fed’s J.Powell, Retail Sales next of relevance event-wise.
The prevailing side-lined theme in the global markets is motivating EUR/USD to extend the consolidative mood above the 1.1300 mark at the time of writing.
EUR/USD focused on data, Powell
EUR/USD is wobbling in the low-1.1300s on turnaround Tuesday, looking to add to Monday’s strong gains although losing some upside impetus in the 1.1350 region so far.
In fact, the pair regained buying interest at the beginning of the week in response to a wave of selling pressure around the buck, particularly after the Federal Reserve announced extra purchases under its Secondary Market Corporate Credit Facility (SMCCF).
Moving forward, the greenback is expected to be under scrutiny later in the session in light of the release of May’s Retail Sales, Industrial/Manufacturing Production and the testimony by Chief J.Powell before the Senate Banking Committee, as part of the Semi-annual Monetary Policy Report to the Congress.
Earlier in the session, the German Economic Sentiment came in above estimates this month, rebounding to 63.4 (from 51.0). In the broader Euroland, the Economic Sentiment also improved more than forecasted at 58.6 (from 46.0).
What to look for around EUR
EUR/USD has opened the week on a strong note after the Fed announced another round of fresh monetary stimulus, undermining the insofar positive momentum around the dollar. The constructive view in the euro, however, remains well sustained by the gradual and relentless re-opening of economies in Europe and by the ongoing monetary stimulus announced by the ECB, Germany and the European Commission. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.04% at 1.1327 and a breakout of 1.1422 (weekly/monthly high Jun.10) would target 1.1448 (50% Fibo of the 2017-2018 rally) en route to 1.1495 (2020 high Mar.9). On the other hand, the next support aligns at 1.1212 (weekly low Jun.12) seconded by 1.1186 (61.8% Fibo of the 2017-2018 rally) and finally 1.1024 (200-day SMA).
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