EUR/USD looks for direction around 1.1360 ahead of EMU CPI, G-20

• EUR/USD remains in the 1.1360 region ahead of data.
• EMU inflation figures next of relevance in the docket.
• Investors stay focused on the imminent G-20 event.

The shared currency is extending the multi-session rangebound theme at the end of the week, taking EUR/USD to the 1.1360 zone ahead of the opening bell in Euroland.

EUR/USD now looks to EMU, US data, G-20

A series of ‘doji-like’ candles in past sessions leaves the price action in spot inconclusive, as market participants remain well into a cautious stance in light of the key G-20 event that kicks in later today.

The centre of the debate will be undoubtedly on the meeting between President Trump and his Chinese peer Xi Jingpin tomorrow, all amidst some recent comments from Trump on potential further tariffs and Chinese preconditions to resume talks.

In the meantime, the pair has so far met decent support in the vicinity of the key 200-day SMA in the mid-1.1300s following Tuesday’s bearish ‘outside day’. Trade jitters should continue to dictate the mood in the risk-appetite trends in the very near term, although investors should slowly start to adjust their views to the recent dovish twist from the ECB, keeping the demand for EUR somewhat subdued.

Moving forward, advanced June inflation figures in the region will be in the limelight later in the European morning. Across the ocean, PCE figures, Personal Spending/Income and the final U-Mich reading for the current month should keep the attention on the buck.

What to look for around EUR

The renewed dovish stance from the ECB and USD-dynamics should dictate the price action around the pair in the near term, helped at the same time by the broad risk-appetite trends and trade tensions. Further out, the slowdown in the region looks unremitting and reinforces at the same time the current dovish attitude of the central bank. On the political front, Italian politics is expected to remain a source of uncertainty and volatility for EUR, with the centre of the debate gyrating around the country’s opposition to EU fiscal rules as well as the challenging tone from LN’s M.Salvini.

EUR/USD levels to watch

At the moment, the pair is retreating 0.02% at 1.1366 and faces the next down barrier at 1.1344 (low Jun.25) followed by 1.1260 (100-day SMA) and finally 1.1181 (low Jun.18). On the flip side, a break above 1.1412 (high Jun.25) would target 1.1419 (high Feb.28) en route to 1.1448 (monthly high Mar.20).