EUR/USD sidelined below 1.1700 ahead of IFO, Trump-Juncker
- The pair alternates gains with losses in the 1.1680 area on Wednesday.
- Attention will be on trade once again and the Trump-Juncker meeting.
- German IFO next risk event in the euro area later in the session.
EUR/USD is extending the multi-day sideline theme on Wednesday, gyrating around the 1.1680 region ahead of key events in Euroland later today.
EUR/USD focused on trade, data
Spot has retirated to the 1.1680 region today, prolonging the consolidative pattern since the start of July as another test/breakout of the key resistance area in the mid-1.1700s still remains elusive.
In the meantime, EUR should remain wary of the upcoming meeting between President Trump and European Commission’s J.C.Juncker in Washington, with US tariffs on cars and the willingness to prevent a trade war on top of the agenda.
In addition, the publication of the German IFO will also be a salient event later in the European morning. Market participants are pointing to a probable rebound in the survey, falling in line with the recent advanced PMI prints for the current month.
EUR/USD levels to watch
At the moment, the pair is losing 0.03% at 1.1684 and a breakdown of 1.1575 (low Jul.19) would open the door to 1.1527 (low Jun.28) and then 1.1508 (2018 low May 30). On the flip side, the next hurdle at 1.1749 (high Jul.23) followed by 1.1792 (high Jul.9) and finally 1.1853 (high Jun.14).