EUR/USD flat-lined around 1.0850 ahead of EMU data
- EUR/USD trades without direction around 1.0850 on Wednesday.
- EMU’s Industrial Production for the month of March coming up next.
- US Producer Prices, Powell’s testimony in the limelight later in the session.
The single currency is navigating almost unchanged vs. the greenback on Wednesday, motivating EUR/USD to extend the consolidative theme in the mid-1.0800s.
EUR/USD looks to data, risk trends
EUR/USD is prolonging the side-lined mood in the 1.0850 region in the middle of the week, always against the backdrop of the generalized rangebound theme in the global markets.
In the meantime, investors keep monitoring the gradual return to some sort of normality in several European economies, while closely watching the pick-up of infected cases of the coronavirus in China, South Korea and Germany.
Later in the euro docket, Industrial Production in the broader Euroland will be the only release of note. Across the pond, March’s Production Prices, the testimony by Fed’s J.Powell and the usual weekly report by the EIA will be in the limelight.
What to look for around EUR
EUR/USD appears to have met some decent contention in the 1.0780 so far this week in a context of poor results from fundamentals in the region and a broad-based consolidation theme. In the meantime, the solid position of the current account in the euro area coupled with the gradual re-opening of the economy in the region appear to have limited occasional weakness in the currency.
EUR/USD levels to watch
At the moment, the pair is gaining 0.01% at 1.0847 and a breakout of 1.0948 (55-day SMA) would target 1.1019 (weekly/monthly high May 1) en route to 1.1022 (200-day SMA). On the other hand, the next down barrier emerges at 1.0782 (weekly low May 6) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23).