EUR/USD testing highs around 1.1210

The single currency seems to have recovered the smile at the beginning of the week, now sending EUR/USD to the area of daily highs in the 1.1210/20 region.

EUR/USD regained 1.1200 and above

The renewed offered bias around the greenback helped spot to regain the key barrier at 1.1200 the figure in early trade after bottoming out in the 1.1165/60 band last Friday.

The unexpected dovish bias at the ECB meeting on Thursday gave the pair further room to retrace part of the strong rally to the vicinity of the 1.1300 handle, although the down move seems to have found decent support near 1.1160 for the time being.

EUR has also found support today following the results from the first round of the French legislative elections, where President Macron’s En Marche party won with more than 32%, aiming to get majority in the National Assembly. The second round of the elections will be next Sunday.

EUR also stays underpinned from the speculative front, with net longs climbing further to the highest level since late December 2011 during the week ended on June 6, as shown by the latest CFTC report.

Data wise in Euroland, the next risk event will be the release of the ZEW survey in Germany and the euro area, expected tomorrow.

EUR/USD levels to watch

At the moment, the pair is up 0.15% at 1.1212 and a breakout of 1.1240 (high Jun.9) would target 1.1284 (2017 high Jun.5) en route to 1.1300 (high Nov.9 2016). On the flip side, the next support is located at 1.1165 (low Jun.9) followed by 1.1108 (low May 30) and finally 1.1073 (76.4% Fibo of 1.1300-1.0339).