EUR/USD sidelined around 1.2450 ahead of data
- The pair is navigating the key resistance area around 1.2450.
- USD slightly bid below the 89.00 milestone, looks to data.
- Risk-on mood prevails as US-China trade concerns ease.
The risk-on sentiment remains in full swing during the first half of the week and is now prompting EUR/USD to meander the upper end of the range near the key 1.2450 zone.
EUR/USD looks to data, US-China
The pair’s upside momentum remains well and sound on Tuesday despite it is now struggling to overcome the critical resistance area in the mid-1.2400s.
The sell off in the greenback as of late plus now alleviated concerns over a potential US-China trade war, particularly following recent announcements of US tariffs on Chinese imports, have contributed to the up move in spot and lent extra oxygen to the generalized optimism surrounding the risk-associated universe.
On the USD-side, the US Dollar Index (DXY) broke below the key support at 89.00 the figure on Monday, recording at the same time new multi-week lows.
Data wise in Euroland, M3 Money Supply and Private Loans are next on tap seconded by several gauges of confidence and sentiment. Across the pond, the S&P-Case/Shiller index is due seconded by the more relevant Consumer Confidence measure by the Conference Board.
EUR/USD levels to watch
At the moment, the pair is gaining 0.04% at 1.2448 and a break above 1.2462 (high Mar.27) would target 1.2537 (high Jan.25) en route to 1.2557 (2018 high Feb.16). On the flip side, immediate contention emerges at 1.2344 (10-day sma) followed by 1.2241 (low Mar.21) and finally 1.2206 (low Feb.9).
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.
