EUR/USD remains side-lined around 1.1230 post-PMIs

EUR/USD keeps the neutral bias unaltered so far on Wednesday.
EMU, German final manufacturing PMIs came in on the strong side.
US ADP, ISM Manufacturing, FOMC minutes next of note in the NA session.

Pablo Piovano FXStreet

EUR/USD sticks to its consolidative fashion so far on Wednesday, always above the key level at 1.12 the figure.

EUR/USD focused on data, COVID-19

There is not much going around in global markets other than the developments stemming from the coronavirus pandemic and progress (or absence of it) in the re-opening of the global economy in order to return to some normality (ish).

In the meantime, EUR/USD continues to trade without a clear direction above the 1.1200 mark and with clear support in the 1.1170 region for the time being and against the backdrop of alternating risk appetite trends.

Earlier in the session, final German and EMU Manufacturing PMIs surprised to the upside for the month of June, while the German jobless rate ticked lower to 6.4% in June and Retail Sales expanded at a monthly 3.8% during May, also surpassing estimates.

Later in the NA session, the bulk of the attention will be on the ADP report and the ISM Manufacturing, all ahead of the release of the FOMC minutes.

What to look for around EUR

EUR/USD remains well supported around the 1.1170 region so far. In the meantime, investors continue to gauge the gradual and relentless re-opening of the economy in Europe against the possibility of a second wave of contagion (as per new coronavirus outbreaks around the world). The constructive view in the euro, however, remains well sustained by the improvement of some fundamentals in the region, in turn propped up by persistent (and massive) monetary stimulus by central banks. On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.

EUR/USD levels to watch

At the moment, the pair is advancing 0.08% at 1.1241 and a breakout of 1.1287 (weekly high Jun.29) would target 1.1348 (weekly high Jun.23) en route to 1.1422 (monthly high Jun.10). On the other hand, immediate contention emerges at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1035 (200-day SMA).

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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