The euro is on an upwards trajectory this Monday morning. Since the 31st of May, the rate has been consolidating around the 23.6 Fibonacci level at 1.1718.
Last week was full of economic data releases from both the US and EU. The euro rose on the back of a shift in political power in Spain and Italy, as well as positive data from the German jobs market. Today, the pair is trading within a range of 1.1655 (low) and 1.1714 (high).
This week, Mario Draghi’s speech could provide support to the euro, in which he is expected to talk about the current economic situation in the Eurozone as well as the recent GDP figures. The EURUSD pair is expected to test the 23.6 Fibo level this week ahead of the Fed and ECB meetings, which are scheduled for the 13th and 14th of June respectively.
If the pair breaks through 1.1718, we could see it gain a foothold above the 23.6 Fibo, but we’re unlikely to see any purposeful movement despite the beginnings of a trade dispute between the US and EU.
Important events this week:
5th of June – 16:00: ECB President Draghi’s speech.
7th of June – 12:00: Eurozone GDP (YoY) (Q1).
7th of June – 12:00: Eurozone GDP (QoQ) (Q1).