EUR/USD probes session tops above 1.1200

• EUR/USD reverses part of the recent drop to 1.1180.
• The recovery comes on the back of the weaker dollar.
• EMU’s Consumer Confidence, ECB-speak next on tap.

EUR/USD seems to have met some decent support in the vicinity of 1.1180 so far this month, managing to regain some composure and advance above 1.1200 the figure on Monday.

EUR/USD looks to data, USD

Following four consecutive daily pullbacks, including monthly lows in the 1.1180/75 band on Friday, EUR/USD has started the week on a positive fashion and is looking to regain the 1.1200 mark and above on a more sustainable fashion.

In the meantime, the key Fibo level (of the 2017-2018 drop) in the 1.1190 zone continues to hold the downside for the time being, always looking to the broader risk appetite trends as key drivers of the pair’s price action. On the latter, the progress of the re-opening of economies in Europe plus the probability of another coronavirus outbreak remain on top of the debate.

Later in the session, the European Commission will publish its preliminary gauge of the Consumer Confidence in the euro area for the current month ahead of the speech by ECB’s VP Luis De Guindos.

What to look for around EUR

EUR/USD has started the week on an optimistic mood after bottoming out in the proximity of 1.1170. In the meantime, investors continue to look to the gradual return to some sort of normality in the Old Continent as well as rising concerns over the probability of a second wave of coronavirus contagion.  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 0.43% at 1.1221 and a break above 1.1422 (weekly/monthly high Jun.10) would target 1.1448 (50% Fibo of the 2017-2018 rally) en route to 1.1495 (2020 high Mar.9). On the other and, immediate contention emerges at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1027 (200-day SMA).