EURUSD reverses the initial decline to 1.0960, before Lagarde. Later in the European afternoon, Chair Lagarde delivers a speech.

EURUSD emphasizes ECB and data

On the strength of the dollar’s ongoing rebound, the EURUSD retargets the important 1.1000 barriers. While the risk complex’s price action looks muted prior to Monday’s starting bell in the old continent.

The continuous aggressive sentiment among ECB rate-setters. which allowed for a 50 basis point rate increase at the May meeting. It is continuing to support German 10-year rates as they trade around the top of the band.

The currency pair EURUSD trades slightly defensively to start the week. But eventually recovers from recent lows around 1.0960. According to a recent study by Bloomberg, the ECB’s policy rate will peak at nearly 3.75% in July.

ECB Chair C. Lagarde is scheduled to speak in New York, and Board members McCaul and Tuominen will make an appearance at a later time. The NAHB Index, the TIC Flows, and the NY Empire State Index will all be slated for Monday.

EURUSD Duo Watch list

On the strength of some correction gains in the dollar, the EURUSD currency duo has been retracing from recent highs near 1.1100 during the past week. Price movement surrounding the euro may keep on closely track dollar movements. Including the emerging Fed-ECB split with regard to the banks’ objectives on potential future changes in interest rates.

Going forward, hardline ECB-speak continues to support additional rate increases. Despite the fact that some impetus in the region’s economic fundamentals has been lost.

Key levels to watch in the EURUSD

The currency pair is currently up 0.01% at 1.0994, and a break over 1.1075 (the 2023 top set on April 14) would aim for 1.1100 (round figure). Before reaching 1.1184 (the 2022 weekly peak set on March 21). On the other hand, support is found at 1.0788 (the month bottom from April 3), and 1.0756 (the 55-day SMA). And lastly 1.0712 (the bottom from March 24).

Technical Indicators