EUR/USD Forecast: recovery faces the next target above 1.1300

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.

Immediate target on the upside remains at the critical 200-week SMA at 1.1337. Ideally, spot should clear the area above the 1.1400 handle in order to alleviate downside pressure and re-focus on 1.1500 and above. In case the selling bias makes a comeback, recent lows in the 1.1180 region should offer strong contention, helped by 2019 lows at 1.1176.Immediate target on the upside remains at the critical 200-week SMA at 1.1337. Ideally, spot should clear the area above the 1.1400 handle in order to alleviate downside pressure and re-focus on 1.1500 and above. In case the selling bias makes a comeback, recent lows in the 1.1180 region should offer strong contention, helped by 2019 lows at 1.1176.