EUR/USD upside capped around 1.1780
- The pair manages to climb to the 1.1770/80 band.
- The greenback reverts the initial test of YTD tops beyond 94.00.
- Fed-speakers later and the FOMC minutes (Wednesday) grab all the attention.
The recovery in EUR/USD stalled just around the 1.1780 level at the beginning of the week, coming up from fresh YTD lows near 1.1710.
EUR/USD supported near 1.1710
Dip-buyers appeared around the key contention area near 1.1700 the figure earlier in the session, motivating the pair to leave behind the initial negative mood and regain part of the ground lost.
On the opposite side, the buck clinched fresh tops above the 94.00 mark albeit sellers stepped in soon afterwards, sparking the ongoing correction to the 93.70 region amidst some consolidation of US yields around the 3.07% level.
In addition, initial jitters coming from the uncertainty surrounding the populist coalition government in Italy appear mitigated for the time being, somewhat alleviating the downside in EUR.
Nothing expected in the data/event space today, leaving the bulk of the attention to speeches by Atlanta Fed R.Bostic (voter, centrist), Philladelphia Fed P.Harker (non voter, hawkish) and Minneapolis Fed N.Kashkari (non voter, dovish).
EUR/USD levels to watch
At the moment, the pair is losing 0.07% at 1.1763 and a breakdown of 1.1717 (2018 low May 21) would target 1.1700 (psychology level) en route to 1.1553 (monthly low Nov. 7 2017). On the flip side, the next resistance aligns at 1.1846 (10-day sma) seconded by 1.1961 (21-day sma) and finally 1.1996 (high May 14).
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.
