EUR/USD rebounds from 4-day lows near 1.1250
- EUR/USD met initial support around the 1.1250 region.
- Markets are now focused on the unabated advance of the coronavirus.
- US June’s Producer Prices only scheduled later in the NA docket.
The single currency has come under renewed selling pressure in the last couple of days, forcing EUR/USD to recede from multi-week tops around 1.1370 to Friday’s lows near 1.1250.
EUR/USD focused on the pandemic and its impact
EUR/USD is down for the second session in a row at the end of the week, facing increasing downside pressure in response to the better tone surrounding the greenback.
In fact, the risk aversion sentiment re-emerged among traders in past sessions as market participants keep reassessing the ongoing reopening of economies around the world vs. the unremitting advance of the COVID-19 pandemic.
In addition, recent news has shifted the focus on President Trump, after the US Supreme Court ruled that his financial records could be examined. This comes after President Trump did not make public his tax returns. The news appears to have added extra uncertainty to the US political scenario ahead of the general elections in November, sustaining at the same time the rebound in the buck.
Nothing worth mentioning data wise in Euroland on Friday, whereas Producer Prices for the month of June will be the only release across the pond.
What to look for around EUR
Sellers in EUR/USD turned up after the pair hit fresh multi-week peaks around 1.1370 on Thursday, always supported by the solid improvement in the risk-associated universe. The constructive view in the euro, in the meantime, stays well and sound and supported by the improvement of key fundamentals in the region amidst the current (and massive) monetary stimulus by central banks. 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 losing 0.03% at 1.1281 and faces immediate contention at 1.1168 (monthly low Jun.19) seconded by 1.1147 (high Mar.27) and finally 1.1046 (200-day SMA). On the other hand, a breakout of 1.1370 (monthly high Jul.9) would target 1.1422 (monthly high Jun.10) en route to 1.1495 (2020 high Mar.9).