- EUR / USD remains listless around the 1.1900 level.
- The dollar alternates gains and losses before the US CPI.
- Economic sentiment in Germany and the euro area in general deflated in April.
The pair EUR/USD manages to stay around the key region of 1.1900 during the European session on Tuesday.
EUR / USD is now turning its attention to US data.
EUR / USD is moving around the 1.19 hurdle, having set lows near the 1.1880 level earlier in the day, amid inconclusive price action around the pair as well as the absence of fundamental catalysts.
In the meantime, The common currency remains apathetic after the ZEW survey for the month of April showed that economic sentiment in both Germany and the euro zone deflated to 70.7 and 66.3, respectively. Both figures were below estimates and note some cooling in the morale of investors in the region.
Meanwhile, the prevailing directionless movement is anticipated to persist until at least the publication of US inflation figures for the month of March that will be announced at the beginning of the American session.
What can we expect around the EUR?
EUR / USD tests the 1.1900 level, although the lack of a strong catalyst prevents the pair from extending the move higher. However, the short-term outlook for the pair appears to be improving thanks to growing hopes for a sustained recovery in the Old Continent now that the launch of the vaccine appears to have gained serious pace.
Key events in the eurozone this week: Industrial production, Lagarde speech (Wednesday) – German March final CPI (Thursday) – Eurogroup meeting, eurozone final CPI (Friday).
Eminent Background Issues: Asymmetric economic recovery in the region. Sustainability of the rebound in inflation figures. Progress of the vaccine launch. Likely political turmoil around the EU Recovery Fund.
EUR / USD levels
At the time of writing, the EUR / USD pair is shedding 0.10% on the day, trading at 1.1898. A break below 1.1704 (March 31 low) would target 1.1602 (November 4 low) en route to 1.1570 (2008-2021 support line). On the positive side, the next bullish barrier is at 1.1927 (April 8 high), followed by 1.1989 (March 11 high) and finally 1.2000 (psychological level).
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
