1.1200 Back In View For The EUR/USD

Following a dismal week of trade, the EUR/USD is in the midst of posting a two-session winning streak. Fueled by bargain hunters defending the 1.1100 handle and a full slate of economic events, it appears that currency traders are optimistic over the Euro’s chances against the USD to open the week.

Key Events To Watch

If you are already trading or going to trade the EUR/USD this week, then be aware of the economic calendar. The next 72 hours are going to be key, featuring the following events:

Event                                           Country           Forex Session

Caixin PMI (April)                           China                 Tuesday

Unemployment Rate (April)         Germany           Tuesday

GDP (Q1)                                         Eurozone            Tuesday

CPI Index (April)                             Germany            Tuesday

ISM PMI (April)                                  U.S.                Wednesday

FED Rate Decision                            U.S.                Wednesday

These are primary market movers that the EUR/USD will likely exhibit sensitivity to. The action kicks off during the coming U.S. overnight session with the Caixin PMI (April) from China. This figure will be looked upon by traders as a barometer of global economic health. In the event it deviates from expectations of 51.0, forex volatility may pick up significantly.

EUR/USD: Daily Technical Outlook

Today’s action in the EUR/USD suggests that the 1.1110 handle is setting up to be an intermediate-term low. Of course, this week’s economic calendar will have something to say about that.

Overview: At press time (about 12:30 PM EST), rates are hoving near the 1.1180 level. Given the bullish price action of the day, we may be in for some range extension to the topside before today’s close. In the event this scenario unfolds, then this market will likely revisit the 1.1200 level before Tuesday’s Eurozone GDP report.