EUR/USD stays firm and approaches 1.1300
- EUR/USD trades on a strong note just below 1.1300 on Monday.
- German flash CPI surprised to the upside at 0.6% MoM in June.
- US Pending Home Sales, Fedspeak coming up next.
EUR/USD keeps navigating the area of 3-day highs just below the 1.1300 area at the beginning of the week.
EUR/USD bid on USD-selling
The buying interest remains well and sound around EUR/USD on Monday, always against the backdrop of the increasing selling bias surrounding the greenback.
Looking at the broader scenario, market participants keep tracking the progress of the return to some sort of ‘normal life’ in Euroland despite the coronavirus pandemic looks everything but abated.
In the docket, German advanced inflation figures showed consumer prices are expected to rise at a monthly 0.6% during the current month, surpassing initial forecasts. Earlier in the session, the Consumer Confidence gauge tracked by the European Commission came in at -14.7 for the month of June, matching the preliminary reading.
Across the pond, Pending Home Sales are due along with the Dallas Fed manufacturing index and speeches by FOMC’s Daly and Williams.
What to look for around EUR
EUR/USD appears to have met some important resistance in the 1.1350 region in recent days. Investors continue to look to the gradual return to some sort of economic normality in Europe while closely following new COVID-19 cases around the world. The constructive view in the euro, however, remains well sustained by the gradual and relentless re-opening of economies in Europe and by the ongoing monetary stimulus (announced by the ECB, Germany and the European Commission). On top, the solid performance of the region’s current account is also adding to the attractiveness of the shared currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.63% 1.1286 and a breakout of 1.1348 (weekly high Jun.23) would target 1.1422 (monthly high Jun.10) en route to 1.1495 (2020 high Mar.9). On the downside, the next support lines up at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1032 (200-day SMA).