EUR/USD Surge Past 1.1150 Level, Focus Shifts to US Releases
The EUR/USD pair reversed from session low level of 1.1122 and turned positive to currently trade above the mid-point of 1.1100-1.1200 handle as investors turn focus to US economic data.
Meanwhile data released from the Euro-zone was mixed, with slightly better German unemployment figure while a sharp decline in German monthly retail sales. Meanwhile, headline Euro-zone CPI matched consensus estimates and contracted 0.1% in May, marking a fourth consecutive month of contraction. The pair's reaction was muted to mixed Euro-zone data, but now seems to have gained traction as investor now shift their focus to US economic data, slated for release later during NA session.
From the US, the Fed's preferred inflation gauge, US core PCE price index, will be in spotlight, which is expected to climb to 0.2% on a m-o-m basis while y-o-y rate is expected to remain unchanged at 1.6%. Other releases from the US include April personal income and spending, S&P Case Shiller house price index for March, Chicago PMI and the Conference Board's consumer confidence for the month of May. A surprisingly higher print would boost prospects of June Fed rate-hike and immediately boost the greenback.
From technical perspective, the pair on Monday managed to hold and rebound from an important support confluence near 1.1100 handle, comprising of 200-day SMA and a medium-term ascending trend-channel support. Tuesday's up-move beyond Monday's peak resistance should now assist the pair to scale higher.
Technical levels to watch
From current levels, the pair seems to head back towards 1.1200 handle, which if conquered has the potential to continue boosting the pair in the near-term, initially towards 1.1300 handle and eventually towards its next major resistance near 1.1350-55 region.
On the flip side, 1.1100 remains immediate support level to defend, below which the pair seems to immediately drift towards 1.1070-65 support before heading towards testing lower levels in the near-term.