EUR/USD recovery test 1.1860 ahead of US PPI
- The index rebounds to 1.1860/65 after dropping to 1.1820.
- US 10-year yields move higher beyond the 3.0% level.
- US Producer Prices, Bostic’s speech, EIA report later in the session.
The upside momentum in the greenback appears somewhat mitigated today, allowing EUR/USD to bounce off lows and re-test the 1.1860/70 band.
EUR/USD looks to US data
After bottoming out in the 1.1820 region, or fresh 2018 lows, the pair sparked a squeeze higher to the 1.1860/70 band, where it seems to have met some decent resistance.
The greenback, instead, recedes from the area of recent 2018 tops and trades around 93.15, clinging to its daily gains for the time being while yields of the US 10-year note manage to stay above the 3.0% level.
In the data space, US Producer Prices are coming up next seconded by the speech by Atlanta Fed R.Bostic (voter, centrist) and the EIA’s weekly report on US crude oil inventories.
EUR/USD levels to watch
At the moment, the pair is losing 0.04% at 1.1860 and a break below 1.1823 (2018 low May 8) would open the door to 1.1768 (78.6% Fibo of November-February up move) and finally 1.1718 (monthly low Dec.12 2017). On the other hand, the next upside barrier aligns at 1.1984 (10-day sma) seconded 1.2018 (200-day sma) and finally 1.2153 (low Mar.1).