EUR/USD looks to consolidate above 1.1700
- The pair breaks above the 1.1700 handle and tests 1.1720.
- The greenback remains on the defensive, drops to 94.20.
- EU Summit later in the week will be the salient event.
The persistent softer tone in the greenback has helped EUR/USD to regain the key 1.1700 milestone and advance to fresh tops in the 1.1720 region, where appears to have found a tough resistance.
EUR/USD focused on EU Summit, risk trends, trade
The pair gained extra steam in recent sessions as the US-China-EU trade front continues to weigh on the buck, dragging the US Dollar Index (DXY) to fresh multi-day lows in the 94.20 area.
In the meantime, spot is extending the follow through after last Thursday’s ‘outside day’ candle, gaining more than 2 cents since recent lows in the 1.1500 neighbourhood and reinforcing the view that a ‘double bottom’ around this area could be in place.
However, the rally in the European currency should be put to the test later in the week when the EU Summit kicks in and where the migration issue is expected to take centre stage.
EUR/USD levels to watch
At the moment, the pair is gaining 0.03% at 1.1708 facing the next hurdle at 1.1720 (high Jun.26) seconded by 1.1722 (23.6% Fibo of the April-May drop) and then 1.1853 (high Jun.14). On the downside, a break below 1.1679 (21-day sma) would open the door to 1.1642 (10-day sma) and finally 1.1508 (2018 low May 29).