Nothing happening around the single currency at the beginning of the week, with EUR/USD gravitating around the 1.1200 area ahead of the NA open.
EUR/USD focus on Brexit negotiations
The pair continues to erode the critical support/resistance line in levels just below the 1.1200 barrier for the time being, although a clear breakout on either direction still remains elusive.
Absent events or significant releases in Euroland, the focus of attention should be on today’s start of the Brexit talks between EU and UK officials.
On another direction, potential pullbacks in spot are likely to be shallow according to EUR futures markets, with initial contention expected to emerge around last Thursday’s low in the 1.1130 region.
From the positioning perspective, EUR speculative net longs continued to increase in the week to June 13, with contracts climbing to the highest level since late December 2011, according to the latest CFTC report.
Event-wise today, speeches by ECB’s Lautenschlager and Nouy are expected later today, while NY Fed W.Dudley (permanent voter, centrist) is also due to speak.
EUR/USD levels to watch
At the moment, the pair is losing 0.04% at 1.1193 and a break below 1.1130 (low Jun.15) would target 1.1108 (low May 30) en route to 1.1073 (76.4% Fibo of 1.1300-1.0339). On the flip side, the next resistance is located at 1.1213 (20-day sma) seconded by 1.1296 (2017 high Jun.14) and finally 1.1300 (high Nov.9).
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