EUR/USD back below 1.1800, trims daily gains
- The pair remains unable to make a run above 1.1800.
- US Dollar retreats across the board during the US session appears to have found support.
- Key events ahead: meeting between Trump and Kim Jong Un and US CPI, ahead of FOMC and ECB.
The EUR/USD pair approached daily highs during the US session but lost strength around 1.1810 and pulled back. It was hovering around 1.1784/88, slightly below the 20-hour moving average.
It is consolidating modest daily gains, recovering after falling on Friday to 1.1725. It is back near June highs. It holds a bullish tone but it is moving toward a short-term uptrend line at 1.1770, a key support.
Before FOMC and ECB, US CPI
An improvement in sentiment around Italy helped the Euro today. Also, a rally in ER/GBP contributed to add support. Tomorrow the meeting between Trump and Kim Jong-um will take place. The FOMC meeting will end on Wednesday the ECB meets on Thursday.
Plenty of events ahead that could impact on market sentiment. But before all that, US CPI data is due tomorrow. “The US Inflation report and the Core CPI are critical especially one day ahead of the Fed and have a considerable impact on the US Dollar”, said Yohay Elam, analyst at FXStreet. According to him, taking into account the last CPI report, if data comes out “at higher than expected with a relative deviation of 1.58 or higher (2.32% or higher in actual terms), the pair may go down reaching a range of 26 pips in the first 15 minutes and 78 pips in the following 4 hours.”
EUR/USD short-term levels to watch
On the upside, resistance levels might be located at 1.1810, 1.1820 and 1.1840. On the flip side, support could be seen at 1.1770 (uptrend line), 1.1755 and 1.1730.