EUR/USD is down smalls around 1.1440 after EU deal
- EUR/USD struggles for direction around the 1.1440 region.
- The EU Leaders Summit clinched a €750 billion deal earlier on Tuesday.
- Markets’ attention stays on the potential development of a COVID-19 vaccine.
The single currency is facing some mild selling pressure on Tuesday, prompting EUR/USD to navigate around the 1.1440 region.
EUR/USD now targets the 2020 highs near 1.1500
After recording fresh 4-month peaks around 1.1470 during early trade, EUR/USD has sparked a correction lower to the 1.1430 region at the time of writing.
In fact, EUR-sellers turned up after EU leaders secured the so-called European Recovery Fund worth €750 billion. The fund includes €390 billion in grants (from €500 billion originally) and €360 billion in loans, all aimed at helping member states to return to some economic normality following the coronavirus fallout.
In the meantime, the greenback trades directionless in the area of multi-month lows on the back of the persistent risk-on context, always amidst the ongoing reopening of the economies across the world and rising hopes on the final development of a COVID-19 vaccine.
What to look for around EUR
EUR/USD is slowly approaching the 2020 highs just below 1.15 the figure, always on the back of the persistent weakness surrounding the buck. As always, upbeat risk appetite trends continue to support the momentum around the euro in combination with the current recovery in the euro zone. In addition, the recently clinched deal on the European Recovery Fund help to put political fears in the region at rest.
EUR/USD levels to watch
At the moment, the pair is losing 0.10% at 1.1436 and faces immediate contention at 1.1186 (61.8% Fibo of the 2017-2018 rally) seconded by 1.1168 (monthly low Jun.19) and finally 1.1147 (high Mar.27). On the opposite direction, a breakout of 1.1469 (monthly highs Jul.21) would target 1.1495 (2020 high Mar.9) en route to 1.1514 (high Jan.31 2019).