EUR/USD firm around 1.1270 ahead of data

The bid tone around the single currency remains intact on Tuesday, taking EUR/USD to the 1.1270 area for the time being.

EUR/USD looks to data, ECB, UK

Spot has regained buying interest and has so far reverted yesterday’s pullback backed on the renewed and strong selling bias hitting the greenback, which dragged the US Dollar Index to fresh 7-month lows in the mid-96.00s.

In the meantime, EUR remains well underpinned by a broad-based view that the ECB could shift to a more aggressive tone at its meeting on Thursday, dropping its pledge to inject further stimulus if needed, all against the backdrop of the incipient recovery in the region although inflation pressures still remain subdued.

In addition, EUR net longs stayed on the rise during the week ended on May 30, as shown by the latest CFTC report, all adding extra legs to the pair’s rally.

EUR-traders also remain vigilant on the UK’s general elections due on Thursday, as oscillations in EUR/GBP would surely have an impact on spot.

Data wise ahead in the session, June’s Sentix index is due along with EMU’s retail sales for the month of April. Across the pond, the IBD/TIPP Economic Optimism Index is expected seconded by JOLTs Job Openings for the month of April.

EUR/USD levels to watch

At the moment, the pair is up 0.12% at 1.1269 and a breakout of 1.1284 (2017 high Jun.5) would target 1.1300 (high Nov.9 2016) en route to 1.1367 (high Aug.18 2016). On the other hand, the immediate support aligns at 1.1202 (low Jun.1) followed by 1.1141 (20-day sma) and finally 1.1108 (low May 30).