- The EU Summit continues to run into trouble amid political differences.
- The US PMI and Eurozone unemployment rate can offer intermediate directions while political plays are likely dominating near-term trade momentum.
In spite of the US-China trade truce limiting the EUR/USD pair’s immediate upside, the quote seesaws near 200-D EMA as traders remain cautious ahead of the EU’s top job announcements.
Given the EU leaders’ inability to agree on top job announcements during the meeting in Brussels, the pair refrains from portraying the latest trade truce between the US and China while trading near 1.1367 during early Monday morning in Asia.
The EU leaders are wrangling over to decide who will occupy the region’s top jobs, including the European Central Bank (ECB) President and the European Commission Chief among many.
Recently, the BBC quoted European Council President Donald Tusk saying that if necessary the talks will continue at breakfast on Monday.
The news report further mentions that the disagreement between the center-right and the nationalists like French President Emmanuel Macron is delaying the issue.
Read: EU Summit preview: Four EUR/USD scenarios for the selection of the new ECB President
In addition to the EU Summit outcome, the US ISM Manufacturing Purchasing Manager Index (PMI) for June and the Eurozone Unemployment rate could offer additional directives for trade decisions. While the US manufacturing gauge is expected to soften to 51.0 from 52.1, the Eurozone Unemployment Rate bears the no change forecast to 7.6%.
Technical Analysis
Latest high around 1.1415 and March month top near 1.1450 can keep being on buyers’ radar till the price remains above 200-day exponential moving average (200-D EMA) level of 1.1363. Alternatively, June month high around 1.1350 and 21-D EMA level of 1.1309 can please sellers during the downturn.
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