EUR/USD stays near tops around 1.1560

The continuation of the selling pressure around the greenback is helping EUR/USD to keep the trade in the upper end of the range near 1.1560.

EUR/USD up on USD-selling

Spot gathered unexpected buying interest after another fiasco from the ‘Trumpcare’ bill sparked a deep pullback in the greenback late on Monday, forcing the US Dollar Index (DXY) to trade in levels last seen in September 2016 in the 94.50/40 band.

EUR remains firm in recent weeks bolstered by rising speculations on a potential action by the ECB regarding its ongoing QE programme (tapering?) at its meeting on Thursday, although market consensus still remains biased towards some announcement at the September meeting.

Data wise in Euroland today, the German/EMU economic sentiment came in below expectations for the current month, although market participants remained largely apathetic on the headlines

In the US, import prices contracted at a monthly 0.2% in June, while the NAHB index and TIC flows are expected later in the NA session.

EUR/USD levels to watch

At the moment, the pair is gaining 0.62% at 1.1549 facing the immediate hurdle at 1.1564 (high Jul.18) followed by 1.1616 (2016 high May 3) and finally 1.1713 (monthly high Aug.24). On the flip side, a breach of 1.1436 (10-day sma) would target 1.1356 (21-day sma) en route to 1.1305 (near term support line).

In addition, the daily RSI (14) is flirting with the overbought area around 70, while the MACD remains well into the bullish territory.