- EUR / USD on 3-month highs, near 1.1200.
- German EMU services PMI came in above estimates.
- US ISM Non-Manufacturing then on the calendar tap.
After recording new 3-month highs near 1.1230, EUR / USD has lost momentum and is now back in 1.1200 Ward.
EUR / USD supported by risk mood
Sellers in EUR / USD hit daily highs in the 1.1225 / 30 band, just before the December 2019 highs near 1.1240. However, the current reflex seems to have met with decent restraint for the moment in the 1200 district.
As usual, the softer tone of the greenback continues to support the vigorous recovery of the pair as well as in the rest of the riskiest assets.
In the calendar, better than expected euro area final service PMIs for the month of May also supported the single currency. Across the pond, the US private sector cut nearly 2.8 million jobs in the past month, according to the ADP report. ISM non-manufacturing orders and April factory orders will follow.
What to look for around the EUR
EUR / USD surpassed the 1.1200 mark in a context of good humor in the risk universe. As usual, the weak dollar and the positive outlook following the gradual reopening of economies around the world confirm investors’ preference for riskier assets. In addition, Germany plans to inject an additional € 100 billion into its economy, in addition to the recently proposed aid of € 750 billion conditioned by the European Commission (EC). The continued support for the euro is also due to the solidity of the region’s current account.
EUR / USD levels to watch
Currently, the pair is up 0.24% to 1.1195 and a break above 1.1227 (weekly / monthly high on June 3) is aimed at 1.1239 (December 31, 2019 high monthly ) en route to 1.1391 (monthly high of June 13, 2019). On the other hand, the immediate controversy emerges at 1.1011 (200-day SMA), followed by 1.0902 (55-day SMA) and finally at 1.0870 (weekly trough on May 26).