EUR/USD looks to consolidate the breakout of 1.1700

The pair extends the sideline theme above the 1.1700 handle.
The greenback alternates direction in the 93.80 region.
EUR upbeat on potential ECB announcement next week.

Pablo Piovano FXStreet

The single currency is trading on a positive fashion on Tuesday, with EUR/USD looking to consolidate the recent breakout of the key 1.1700 milestone.

EUR/USD looks to ECB

The pair gained extra traction late on Tuesday and move above 1.1700 the figure particularly after a story run by news agency Bloomberg said the ECB could discuss the exit of its ‘quantitative easing’ programme at its meeting on June 14.

However, such a scenario appears premature for the time being, as recent data in Euroland remain soft, inflation has picked up (higher energy prices) although the core reading stays laggard, EU-UK Brexit talks remain stalled and political jitters emerged once again in Italy and Spain.

In the meantime, spot has once again surpassed the 1.1700 barrier although it remains vulnerable to further selling pressure via political concerns and USD-dynamics.

In the data space today, ECB’s P.Praet is due to speak later in the European morning, whereas Trade Balance figures are only of note across the pond.

EUR/USD levels to watch

At the moment, the pair is gaining 0.13% at 1.1728 facing the next up barrier at 1.1744 (high Jun.4) seconded by 1.1754 (21-day sma) en route to 1.1830 (high May 22). On the downside, a break below 1.1617 (low Jun.1) would target 1.1511 (2018 low May 29) en route to 1.1479 (low Jul.20 2017).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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