- The pair extends the march north to the 1.1450 zone on Wednesday.
- German GfK Consumer Climate ticks higher for the month of February.
- FOMC meeting will be the salient event later today.
The bid tone around the single currency remains well and sound so far this week, prompting EUR/USD to advance for the fourth consecutive session to the mid-1.1400s.
EUR/USD looks to FOMC event
Spot is up for yet another session today while the greenback is prolonging the sideline theme in the lower bound of the weekly range, always below the critical 96.00 the figure.
Alternating risk appetite trends combined with a renewed offered bias around the greenback appears to be sustaining the current squeeze higher in the pair, which is now facing the critical resistance area near 1.1450, where sits the 100-day SMA.
Moving forward, all eyes will be on the FOMC event during the European evening, where Chief Powell is expected to deliver a somewhat cautious (even dovish) message amidst the ongoing more patient and flexible stance from the Federal Reserve.
In the data space, German Business Climate tracked by GfK improved to 10.8 for the month of February, while Import Prices contracted 1.3% during December, more than initially expected.
What to look for around EUR/USD
Following the recent ECB event and Draghi’s comments, the central bank is expected to enhance its data-dependency stance in the next months in light of the ongoing slowdown in the region. In addition, the US-China trade talks will also be on the investors’ radar this week ahead of the meeting between US and Chinese officials kicking in today and ending tomorrow. On the more political side, the upcoming EU parliamentary elections (May) should start to grab extra attention in the next weeks, always keeping a close eye to the social scenario in France and Italian political effervescence.
EUR/USD levels to watch
At the moment, the pair is gaining 0.01% at 1.1432 and faces initial resistance at 1.1450 (high Jan.29) seconded by 1.1515 (50% Fibo of the September-November drop) and finally 1.1569 (2019 high Jan.9). On the downside, a breach of 1.1413 (21-day SMA) would target 1.1385 (10-day SMA) en route to 1.1326 (200-week SMA).