EUR/USD sticks to daily highs near 1.1180

The single currency keeps the positive note at the end of the week, with EUR/USD attempting to consolidate in the 1.1170/80 band ahead of the NA session.

EUR/USD comes up from 1.1140

The pair found fresh buyers around overnight lows near 1.1140, although gains appear so far limited around 1.1180 amidst thin trading conditions and a softer tone in the buck.

In fact, measured by the US Dollar Index, the greenback gave away part of yesterday’s bull run to the boundaries of 97.50, or multi-day tops. However, USD stays underpinned by the recent decision by the Federal Reserve to raise rates, prospects of further tightening in H2 and the probability that the Fed could start shrinking its balance sheet at some point in Q3.

In spite of the current rebound, EUR remains under pressure from the futures market, where open interest dynamics could be signalling to further pullbacks in the near term.

In the data space, EMU’s final CPI figures for the month of May matched the preliminary readings, showing headline consumer prices rising at an annualized1.4% and 0.9% when excluding food and energy costs.

Across the pond, Dallas Fed R.Kaplan (voter, hawkish) will be the first speaker following the FOMC meeting, while housing starts, building permits and the advance gauge of the consumer sentiment are all due as well.

EUR/USD levels to watch

At the moment, the pair is advancing 0.23% at 1.1172 facing the next resistance at 1.1213 (20-day sma) seconded by 1.1296 (2017 high Jun.14) and finally 1.1300 (high Nov.9). On the other hand, a break below 1.1130 (low Jun.15) would target 1.1108 (low May 30) en route to 1.1073 (76.4% Fibo of 1.1300-1.0339).