EUR/USD looks under pressure around 1.0800 ahead of key data

  • EUR/USD keeps gyrating around the key 1.0800 mark on Friday.
  • Investors stay vigilant on the gradual re-opening of the economy.
  • German flash Q1 GDP figures next of relevance in the euro docket.

The selling bias around the European currency is prolonging for yet another session at the end of the week, leaving EUR/USD on the bearish side and looking to the 1.0800 neighbourhood.

EUR/USD now looks to data

EUR/USD is down for the third consecutive session on Friday, coming under extra downside pressure in past sessions against the backdrop of the improved sentiment around the greenback.

In the meantime, investors’ attention remains on the developments from the coronavirus and the slowly resumption of the economic activity in the Old Continent.

Earlier in the session, German Producer Prices contracted 0.7% inter-month and 1.9% on a year to April. Still in Germany, flash Q1 GDP figures will shed an initial gauge of the impact of the COVID-19 on the domestic economy.

Across the pond, April’s Retail Sales and Industrial Production results are coming up next seconded by the preliminary print of the Consumer Sentiment for the current month.

What to look for around EUR

EUR/USD remains entrenched into the negative ground so far this week, although a sustainable breakdown of the 1.0800 mark still remains elusive. Poor results in domestic fundamentals plus dollar strength have been behind the leg lower in the pair in past sessions, while the negative effects of the coronavirus outbreak have started to emerge in the region and are expected to keep weighing on the currency in the next months. In the meantime, the solid position of the current account in the euro area coupled with the gradual re-opening of the economy in the region keep a deeper pullback somewhat contained for the time being.

EUR/USD levels to watch

At the moment, the pair is receding 0.07% at 1.0797 and faces the next support at 1.0774 (weekly low May 14) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23). On the upside, a break above 1.0896 (weekly high May 13) would target 1.0940 (55-day SMA) en route to 1.1019 (monthly high May 1).

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