EUR/USD: Bulls consolidating the Asian recovery above 1.1800

EUR/USD managed to regain 1.18 handle in Asian session, and now consolidates the renewed uptick above the last heading into a data light European session.

EUR/USD: 1.1900 back on sight ahead of US CPI?

The spot moved-off two-day tops of 1.1824, but remains well bid above 1.1800 levels, as the US dollar remains broadly subdued in sync with Treasury yields, in light of yesterday’s dovish remarks from Fed speakers Kashkari and Bullard, who both sounded less upbeat on the US economic growth and inflation prospects.

From a wider perspective, the sentiment around the Euro remains broadly underpinned amid ECB’s shift in gear towards more hawkish narrative and better Eurozone fundamentals. Meanwhile, in the week ahead, the US inflation expectations will drive the EUR/USD price action, with markets expecting the US CPI figures to tick higher in July and offer further impetus to the USD recovery.

In the meantime, focus remains on the German trade balance and US JOLTs job openings data for near-term trading opportunities.

EUR/USD Technical Set-up  

According to Karen Jones, Analyst at Commerzbank: “EUR/USD has halted ahead of 1.20: The daily RSI has not confirmed the new high and Friday saw the start of a sell off, and we suspect that the 1.20 level may prove to be a bit of a psychological level. Nearby support is provided by the accelerated uptrend at 1.1656 and the 3 month uptrend at 1.1490 and while above here, there is scope for further gains. Resistance lies at 1.2040 the 2012 low, then 1.2170, the 50% retracement from the move down from the 2014 high.”