- EUR/USD keeps the bid tone around 1.1150/60.
- Markets’ attention now shifts to data, trade.
- ECB minutes, US Retail Sales, Philly index coming up later.
The steady/offered bias around the greenback is allowing EUR/USD to challenge weekly peaks beyond 1.1160 on Thursday.
EUR/USD now looks to data
The pair is up for the second session in a row in the second half of the week, extending the recovery further after bottoming out in the 1.1080 region earlier in the month. The move up is also underpinned by the recent breakout of the critical 200-day SMA in the 1.1140 area.
Spot saw its upside renewed in past hours pari passu with the re-emergence of the selling bias around the greenback, which forced the US Dollar Index (DXY) to recede from YTD highs amidst declining yields and after the US and China clinched the ‘Phase 1’ trade deal on Wednesday.
Later in the session, the ECB will publish its minutes from the December meeting. Across the pond, investors will closely follow the release of December’s Retail Sales along with the Philly Fed index, weekly Claims, Business Inventories, the NAHB index and TIC flows.
What to look for around EUR
The pair left behind the key resistance area around 1.1140 and is now looking to extend the move further north. In the meantime, markets’ focus is now seen shifting to a more data-dependent stance while China and the US warm up for the ‘Phase 2’ negotiations. On the more macro view, the slowdown in the region remains far from abated and continues to justify the ‘looser for longer’ monetary stance from the ECB. On the latter, we should have a more detailed assessment of the latest ECB meeting later on Thursday with the publication of the bank’s Accounts.
EUR/USD levels to watch
At the moment, the pair is advancing 0.12% at 1.1161 and faces the next up barrier at 1.1163 (weekly high Jan.15) seconded by 1.1186 (61.8% of the 2017-2018 rally) and finally 1.1199 (high Dec.13 2019). On the downside, a breach of 1.1095 (55-day SMA) would target 1.1085 (2020 low Jan.10) en route to 1.1064 (low Dec.20 2019).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.