- The pair reverses the early pessimism and is now testing daily highs.
- ECB comments boosted the pair to fresh tops near 1.1760.
- US Producer Prices surprised to the upside in June.
The single currency has now recovered the smile, prompting EUR/USD to revert the previous negative mood and instead shift its focus to the 1.1760 region, or daily peaks.
EUR/USD boosted by ECB comments
Spot reverted the drop to the 1.1700 neighbourhood after news cited ECB officials could not find common ground regarding the timing of the first rate hike by the central bank. Some officials are biased towards a Summer 2019 hike, while others seem to lean towards an earlier rate raise, say Autumn.
One way or another, this news seems to have woken up EUR-bulls and pushed spot to the 1.1750/60 band, turning it positive for the day and at the same time recording fresh daily highs.
In the data space, US Producer Prices came in on the strong side in June, advancing at a monthly 0.3%, while the core reading also showed prices up 0.3% inter-month.
EUR/USD levels to watch
At the moment, the pair is gaining 0.08% at 1.1753 facing the next hurdle at 1.1791 (high Jul.9) seconded by 1.1853 (high Jun.15) and finally 1.1854 (38.2% Fibo of April-May drop). On the other hand, a break below 1.1691 (low Jul.10) would open the door to 1.1656 (21-day sma) and then 1530 (low Jun.19).
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