EUR/USD recovers ground lost and approaches 1.1400, looks to EU Summit

EUR/USD is up smalls and trades closer to the 1.14 mark.
All the attention will be on the EU Summit in Brussels later on Friday.
ECB’s De Guindos, final June EMU CPI figures next on the calendar.

Pablo Piovano FXStreet

The single currency has regained some buying interest and is now pushing EUR/USD to the vicinity of the 1.1400 neighbourhood on Friday.

EUR/USD focused on the EU Summit

EUR/USD appears to have resumed the upside at the end of the week following Thursday’s moderate pullback.

In fact, the greenback is receding some ground and allowing the move higher in the risk complex, always against the backdrop of the advance of the pandemic across the world and the gradual recovery in the economic activity.

Later in the docket, the final CPI figures in the euro area for the month of June are due along with the speech by ECB VP Luis De Guindos.

However, all the attention in Euroland will be on the 2-day EU Leaders Summit starting in Brussels, where the so-called European Recovery Fund will be in on top of the agenda. Pessimism among investors, however, seems to dominate the headlines as there is increasing discrepancy among member states regarding the terms of the fund as well as its composition (grants vs. loans).

Across the pond, June’s Housing Starts and Building Permits are due seconded by the preliminary reading of the U-Mich index.

What to look for around EUR

EUR/USD clinched fresh multi-month tops in the 1.1450 region on Wednesday, opening the door to a potential move to 2020 peaks near 1.15 the figure in the near-term. As always, upbeat risk appetite trends continue to support the momentum around the euro in combination with the current recovery in the euro zon. Also supportive of a strong euro appears the solid stance of the current account in the euro area.

EUR/USD levels to watch

At the moment, the pair is gaining 0.12% at 1.1396 and a breakout of 1.1452 (monthly high Jul.15) would target 1.1495 (2020 high Mar.9) en route to 1.1514 (high Jan.31 2019). On the flip side, immediate contention emerges at 1.1186 (61.8% Fibo of the 2017-2018 rally) seconded by 1.1168 (monthly low Jun.19) and finally 1.1147 (high Mar.27).

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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