The upside momentum around the single currency now seems to have lost some vigour, prompting EUR/USD to slip back to the 1.1400 neighbourhood.
EUR/USD focus on US data
In spite of the current small correction, the pair’s bullish stance remains unchanged and stays bolstered by a broad-based ‘buy-the-dip’ sentiment. Gains, however, seems to have found a tough resistance in the 1.1430/35 band, fresh 2017 peaks, for the time being. The ongoing positive streak in spot stays as well supported by the bullish sentiment in EUR futures markets.
Despite the ECB talked down recent hawkish comments by President Draghi at the ECB Forum, market participants have utterly ignored this, fuelling further the demand for the shared currency to levels last traded in June 2016 beyond 1.1400 the figure.
Looking ahead, rumours of ECB tapering, even a potential rate hike in the medium term (or sooner than initially expected), appear poised to dominate the sentiment around EUR.
Ahead in the session, flash inflation figures in Germany and the euro area for the month of June should grab all the attention. In the US data space, the final print for Q1 GDP and the usual weekly report on the labour market are due seconded by the speech by St. Louis Fed J.Bullard (2019 voter, centrist).
EUR/USD levels to watch
At the moment, the pair is gaining 0.17% at 1.1397 facing the next up barrier at 1.1434 (high Jun.24 2016) seconded by 1.1466 (high Apr.12 2016) and finally 1.1616 (high May 3 2016). On the other hand, a break below 1.1292 (low Jun.28) would open the door to 1.1232 (10-day sma) and then 1.1117 (low Jun.20).
