Forex News

EUR/USD upside faltered ahead of 1.0980

  • The daily upside in ERU/USD lost momentum near 1.0980.
  • The dollar regains some poise following session lows.
  • Final March CPIs in Euroland, German IFO take centre stage this week.

Following the earlier advance to the 1.0980 region, EUR/USD has now lose some momentum and recedes to the 1.0930 area.

EUR/USD focused on data, coronavirus

EUR/USD is looking to add to recent gains at the beginning of the week, managing well to keep business above 1.0900 the figure against the backdrop of thin trade conditions due to the Easter Monday holiday in many European markets.

In the meantime, developments from the COVID-19 keep ruling the global sentiment amidst efforts in some countries to relax some lockdown measures in favour of the gradual re-start of the economic activity.

Nothing scheduled data-wise on both sides of the Atlantic on Monday, while US Retail Sales, Initial Claims, Industrial Production figures, the German IFO and final inflation figures for the month of March in the euro bloc will all be published later in the week.

What to look for around EUR

The euro is extending the upside on Monday amidst low volatility and thin trade conditions due to the Easter holidays. On the macro view, recent better-than-expected results in fundamentals in both Germany and the broader Euroland opened the door to some respite in the prevailing downtrend in fundamentals, although the underlying stance still remains well on the negative side. In addition, the recent Eurogroup agreement helped to alleviate some political effervescence among some state members, underpinning further the upbeat momentum in the single currency.

EUR/USD levels to watch

At the moment, the pair is losing 0.01% at 1.0931 and a break above 1.0967 (weekly high Apr.13) would target 1.0973 (55-day SMA) en route to 1.0992 (monthly low Jan.29). On the other hand, immediate contention emerges at 1.0814 (78.6% Fibo of the 2017-2018 rally) seconded by 1.0768 (monthly low Apr.6) and finally 1.0635 (2020 low Mar.20).

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