- EUR/USD leaps to session tops in the 1.1280/85 band.
- The upside follows renewed USD-selling.
- US Retail Sales, U-Mich index next of note in the docket.
The European currency has trimmed part of its daily losses and is now taking EUR/USD back to the 1.1280 region near daily highs.
EUR/USD looks to data
The pair is struggling for direction following two consecutive daily pullbacks, hovering over the 1.1280 region, where converge the 200-hour SMA and the key 100-day SMA.
In the meantime, the pair keeps looking to the unabated US-China trade effervescence for direction, while geopolitical jitters should keep the risk aversion on the scenario for the time being.
Later in the day, the focus of attention will be on the US docket, where May’s Retail Sales and the U-Mich index will in the limelight along with Industrial and manufacturing Production figures.
What to look for around EUR
The broad-based risk-appetite trends and USD-dynamics should dictate the sentiment surrounding the European currency for the time being, all in combination with developments from the trade front including the US, China, the EU and Mexico. On the political front, Italian politics is expected to remain a source of uncertainty and volatility, with the centre of the debate on the country’s opposition to EU fiscal rules. EUR, however, is expected to remain under scrutiny amidst the renewed dovish stance from the ECB and the ongoing slowdown in the region.
EUR/USD levels to watch
At the moment, the pair is gaining 0.01% at 1.1277 and a breakout of 1.1347 (high Jun.7) would target 1.1360 (200-day SMA) en route to 1.1448 (monthly high Mar.20). On the other hand, the next support lines up at 1.1268 (low Jun.13) followed by 1.1219 (55-day SMA) and finally 1.1200 (low Jun.6).
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