EUR/USD moves to fresh tops just below 1.1200

EUR/USD reverses the initial pessimism and reaches 1.1180/85.
The broad-based risk-on sentiment dominates markets.
Absence of data releases leaves the attention to the risk trends.

Pablo Piovano FXStreet

The upbeat momentum around the shared currency remains well and sound so far on Tuesday and is lifting EUR/USD to fresh 3-month peaks in the 1.1180/85 band.

EUR/USD focused on risk appetite

EUR/USD is extending the rally for the sixth consecutive session on Tuesday, managing to regain the upper-1.1100s and shifting the focus to the key barrier at 1.1200 the figure.

The generalized better sentiment in the riskier assets keeps weighing on the dollar and generates extra wings to the pair, which also remains underpinned by the relentless progress in the re-opening of the economy in Europe.

Data wise in Euroland, the unemployment in Spain increased by 26.6K during May, below forecasts and markedly lower than April’s nearly 283K gain.

There are no data releases across the pond other than the API’s weekly report on US crude oil stockpiles.

What to look for around EUR

EUR/USD is flirting with the key resistance area around 1.1200 in the first half of the week. As usual, USD-dynamics and US-China trade effervescence keep driving the sentiment in the global markets, while extra oxygen to the pair is also arriving from the gradual return to the economic normality in Europe and recent news of an aid package proposed by the European Commission. Further support for the euro lies as well in the solid position of the region’s current account.

EUR/USD levels to watch

At the moment, the pair is advancing 0.38% at 1.1177 and a break above 1.1184 (weekly/monthly high Jun.2) would target 1.1186 (61.8% Fibo of the 2017-2018 rally) en route to 1.1239 (monthly high Dec.31 2019). On the other hand, immediate contention emerges at 1.1010 (200-day SMA) followed by 1.0897 (55-day SMA) and finally 1.0870 (weekly low May 26).

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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