EUR/USD testing daily highs near 1.1230 ahead of Sentix

• The pair moves higher on USD weakness, looks to 1.1230.
• The greenback loses the grip and navigates lows in 97.30/20.
• EMU Sentix Index coming up later in the docket.

The shared currency has started the week on a positive note and is now lifting EUR/USD to fresh session tops near 1.1230 ahead of the opening bell in the Old Continent.

EUR/USD looks to data, risk trends

After two consecutive daily pullbacks, spot has recovered the composure at the beginning of the week and is now posting decent gains in the 1.1230 region.

The selling mood around the greenback is sustaining the buying pressure in the pair so far today, supported as well by the shrinking yield spread differential between the US 10-year note and its German peer.

Moving forward, German Trade Balance figures are due later seconded by the Sentix Index for the current month. Across the pond, February’s Factory Orders will be the sole release today.

What to look for around EUR

EUR remains under pressure following poor fundamentals in Euroland and the strong up move in the greenback in past weeks. In fact, recent disappointing readings in the region somehow confirm that the slowdown in the bloc and the ‘patient-for-longer’ stance from the ECB could be among us for longer than expected. Against the backdrop of souring risk-appetite trend, the greenback should emerge stronger and is expected to keep weighing on spot for the time being. On the political front, headwinds are expected to emerge in light of the upcoming EU parliamentary elections, where the focus of attention will be on the potential increase of the populist option among voters.

EUR/USD levels to watch

At the moment, the pair is gaining 0.13% at 1.1229 and a breakout of 1.1254 (high Apr.1) would target 1.1277 (21-day SMA) en route to 1.1337 (200-week SMA). On the downside, immediate support emerges at 1.1183 (low Apr.2) followed by 1.1176 (low Mar.7) and finally 1.1118 (monthly low Jun.20 2017).