EUR/USD keeps 1.2300 on data, USD steady

The pair sticks to daily gains around the 1.2300 neighbourhood.
EMU’s Investor Confidence missed consensus at 24.0 in March.
US ISM Non-manufacturing, speech by Quarles next on tap.

Pablo Piovano FXStreet

The single currency is waging gains with losses vs. the greenback at the beginning of the week, with EUR/USD gyrating around the 1.2300 handle for the time being.

EUR/USD focused on Italy, data

The pair is struggling to extend its march north on Monday, while it seems to have found strong resistance at recent peaks in the 1.2330 region.

The likelihood of a hung government following the victory of the ‘euro-skeptic’ 5-Star Movement at the Italian elections poured cold water over the recovery in EUR seen in past sessions, at the same time hurting the positive sentiment after the announcement of a grand-coalition government in Germany.

Adding to the unclear direction in the pair, the Sentix index – which gauges investors’ confidence in the euro region – surprised to the downside in March at 24.0, below forecasts and February’s reading.

News from the speculative community saw EUR net longs climbing to 3-week tops during the week ended on February 27, according to the latest CFTC report.

Later in the NA session, the ISM Non-manufacturing is due along with the speech by FOMC’s R.Quarles.

EUR/USD levels to watch

At the moment, the pair is losing 0.08% at 1.2307 with immediate contention emerging at 1.2206 (low Feb.9) seconded by 1.2195 (low Jan.18) and finally 1.2153 (low Mar.1). On the upside, a breakout of 1.2338 (high Mar.5) would target 1.2401 (short-term resistance line) and then 1.2557 (2018 high Feb.18).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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