EUR/USD trims gains and challenges 1.1100 ahead of US ISM

After testing 3-month tops beyond 1.1150, EUR/USD has come under selling pressure and is now hovering around the 1.1100 neighbourhood, up smalls for the day.

EUR/USD focused on ISM, risk trends

Despite the correction from earlier multi-week peaks, EUR/USD manages well to keep the positive streak well and sound, advancing for the fifth consecutive session to levels last seen in mid-March.

The sour sentiment remains well in place around the buck, at the time when investors keep their focus on the US-China-Hong Kong front and the recent escalation of violence in many US cities.

On the supportive side for the euro, progress of the re-opening of the economy in the OId Continent appears to prop up the buying interest although recent PMI readings suggest the recovery might take longer than initially predicted.

What to look for around EUR

EUR/USD is flirting with the key resistance area around 1.1150 at the beginning of the week. As usual, USD-dynamics and US-China trade effervescence keep driving the sentiment in the global markets, while the euro is deriving extra oxygen from the re-opening of economies in Europe and news of an aid package proposed by the European Commission. Further legs for the pair can be found in the solid position of the euro area’s current account.

EUR/USD levels to watch

At the moment, the pair is advancing 0.11% at 1.1112 and a break above 1.1154 (weekly high Jun.1) would target 1.1186 (61.8% Fibo of the 2017-2018 rally) en route to 1.1239 (monthly high Dec.31 2019). On the other hand, immediate contention emerges at 1.1010 (200-day SMA) followed by 1.0894 (55-day SMA) and finally 1.0870 (weekly low May 26).