- EUR/USD trades within a narrow range on Monday.
- The 200-day SMA near 1.1140 is the next key target.
- US CPI next of significance in the docket (Tuesday).
EUR/USD is trading within the familiar range above 1.1100 the figure amidst the positive atmosphere surrounding the riskier assets at the beginning of the week.
EUR/USD keeps looking to trade, data
In fact, the pair is following its risk-associated peers to the positive territory on Monday, always against the backdrop of increasing optimism on the imminent sign of the ‘Phase One’ deal by China and the US (originally on January 15th). Also adding to the generalized better mood among traders, there are no fresh developments from the US-Iran scenario, confirming that recent tensions continue to dissipate.
Nothing scheduled today in the euro docket. Across the pond, speeches by FOMC’s E.Rosengren (Boston Fed) and R.Bostic (Atlanta Fed) should keep the attention on the buck later in the NA session. Key event in the upcoming days include the German GDP and the ECB Accounts on Wednesday and Thursday, respectively.
What to look for around EUR
Spot seems to have met some decent contention in the 1.1085/80 band so far. This area of support is reinforced by the vicinity of the key 55-day SMA in the 1.1090 area. The inability of the spot to surpass the area of recent tops beyond the 1.1200 handle – ideally in the short-term horizon – carries the potential to trigger some consolidation and eventually the resumption of the downside. In the meantime, markets’ focus has now returned to the US-China’s ‘Phase One’ deal, likely to be signed in the next days. On the more macro view, the slowdown in the region remains far from abated and continues to justify the ‘looser for longer’ monetary stance from the ECB.
EUR/USD levels to watch
At the moment, the pair is gaining 0.10% at 1.1128 and faces the next up barrier at 1.1139 (200-day SMA) seconded by 1.1186 (61.8% of the 2017-2018 rally) and finally 1.1199 (high Dec.13 2019). On the downside, a breach of 1.1092 (55-day SMA) would target 1.1085 (2020 low Jan.10) en route to 1.1066 (low Dec.20 2019).