- The EUR / USD pair continues to trade sideways on Tuesday.
- German 10-year yields fall to multi-week lows near -0.23%.
- German EMU economic sentiment for June disappointed market expectations.
The single currency maintains the offered tone unchanged so far and motivates the EUR/USD to stay within the daily consolidation position around the 1.2170 area.
EUR / USD focused on ECB and US data.
No news on the pair so far as it continues to navigate within a tight range and follows the general cautious tone ahead of key events on both sides of the Atlantic later in the week.
Meanwhile, the economic recovery in the Old Continent, the vaccination campaign and the rumor about a possible move by the ECB on the PEPP at its meeting on Thursday seems to dominate investor sentiment.
On the economic calendar, the ZEW survey showed soft figures in June after economic sentiment in both Germany and the wider euro bloc disappointed the consensus and fell to 79.8 and 81.3, respectively.
Across the pond, the NFIB index dipped a bit to 99.6 in May, while the trade deficit narrowed to $ 68.9 billion in April.
What to look for around EUR
Last week’s selloff of EUR / USD found solid support around 1.2100. The subsequent bounce managed to retest the key 1.2200 level, leaving the outlook on the positive side at least in the very short term. Looking at the broader scenario, the constructive outlook on the European currency remains and seems underpinned by the auspicious results of the bloc’s fundamentals along with higher morale, prospects for a strong rebound in economic activity in the Old Continent in the coming years. months and investors’ appetite for riskier assets.
Technical levels
So far, the pair is shedding 0.11% at 1.2175 and a break below 1.2063 (23.6% Fibonacci retracement from November to January rally) would target 1.2051 (May 13 weekly low) on its way to 1.1985 (May 13 low). month of May 5). On the positive side, the next obstacle is located at 1.2266 (monthly maximum of May 25) followed by 1.2300 (round level) and finally 1.2349 (maximum of January 6, 2021).
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