EUR/USD retreats from 2020 highs near 1.1550
- EUR/USD retreats from nearly 2-year highs well above 1.15.
- Dollar-weakness remains the exclusive driver of the move up.
- ECB’s C.Lagarde, De Guindos are due to speak later in the session.
The upside momentum in the single currency (and the rest of its risk-peers) accelerated on Tuesday and pushed EUR/USD to fresh 22-month highs near 1.1550.
EUR/USD boosted by USD-selling, risk appetite
EUR/USD is now coming under some selling pressure following the opening bell in the Old Continent, leaving behind recent tops in the 1.1545/50 band to re-test the vicinity of 1.15 the figure at the time of writing on Wednesday.
Indeed, the sentiment in the risk universe remains buoyant and keep underpinning the solid upside momentum in the pair, lifting it to levels last traded back in January 2019 and maintaining at the same time the buck under severe downside pressure.
in addition, inflows into the euro have accelerated after the EU Leaders secured a €750 billion recovery fund, aimed at helping European economies to recover (faster) from the coronavirus fallout.
In the euro docket, ECB’s Christine Lagarde will participate in a Washington Post Live event, while Luis De Guindos will speak at an online annual US-EU Symposium. Across the Atlantic, May’s House Price Index by the FHFA is due ahead of Existing Home Sales and the EIA’s report on crude stockpiles.
What to look for around EUR
EUR/USD recorded fresh 2020 highs well above the 1.15 level, always on the back of the persistent weakness surrounding the dollar. As always, upbeat risk appetite trends continue to support the momentum around the euro in combination with the current recovery in the euro zone. In addition, the recently clinched deal on the European Recovery Fund help to put political fears in the region to rest for the time being.
EUR/USD levels to watch
At the moment, the pair is gaining 0.01% at 1.1528 and a breakout of 1.1547 (2020 high Jul.22) would target 1.1569 (2019 high Jan.10) en route to 1.1624 (monthly high Oct.1 2018). On the downside, the next support aligns at 1.1448 (50% Fibo of the 2017-2018 rally) seconded by 1.1422 (monthly high Jun.10) and finally 1.1168 (low Jun.19).