EUR/USD: Bulls flirt with 1.2100 after refreshing two-month top, German IFO figures eyed

  • EUR/USD eases after rising to fresh high since February 26.
  • Mildly positive market sentiment exerts additional downside pressure on the DXY.
  • Brussels push stands tough on Brexit, South China Sea but welcomes US tourists.
  • German IFO, US Durable Goods Orders will decorate calendar, risk catalysts be the key.

EUR/USD steps back to 1.2110, up 0.11% intraday, following its run-up to the highest levels in two months, ahead of Monday’s European session. The European Union’s (EU) comparatively strong stand in Brexit joins faster vaccination-led economic recovery hopes to back the bulls. Though, today’s German IFO sentiment data for April and the US Durable Goods Orders will be the key to watch.

With the recent anger rally in Northern Ireland (NI), the EU gets an upper hand over the UK when it comes to the post-Brexit deal. The bloc recently demanded Britain alter food standards to have an easy border near between the NI and the UK.

Elsewhere, strong inoculations continue in the bloc and help the key covid-infected countries, like France, to battle the pandemic. The bloc also offers support to India as it records all-time high infections.

It should be noted that the region’s dislike for Beijing’s security measures in the South China Sea and readiness to welcome the vaccinated American tourists during this summer also helped direct the EUR/USD moves.

Above all, the US dollar index (DXY) drop to a fresh low since early March helps the key currency pair.

Amid these plays, stocks futures print mild gains whereas the US Treasury bonds are on a softer footing.

Given the upbeat expectations from the EU’s strong jabbing drive, German IFO numbers are likely to come in strong for April, as already hinted by the European Central Bank (ECB). However, the anticipated strength in the US Durable Goods Orders for March, expected +2.5% versus -1.2%, may test the EUR/USD bulls.

Technical analysis

Sustained trading beyond 100-day SMA also takes clues from bullish MACD to keep EUR/USD buyers hopeful. It should, however, be noted that March month’s high near 1.2115 and a downward sloping trend line from January 06, around 1.2120, become decisive for the pair’s further upside. Meanwhile, pullback moves may eye the last week’s top near 1.2080 before retesting the 100-day SMA level of 1.2056.

ADDITIONAL IMPORTANT LEVELS

”Source From fxstreet”

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