EUR/USD: Will it break the range ahead of Trump-Xi Summit?

The EUR/USD pair extends its range-trade below 1.07 handle into a fourth-day today, as the spot await a fresh trigger to break-out from the 60-pips range later today.

The major has entered a phase of bullish consolidation after yesterday’s sharp pullback from 1.0635 support, following a lack of clarity delivered by the Fed on its move to trim the balance-sheet size this year, which knocked-off the treasury yields across the curve alongside the buck.

Increased cautiousness heading into the key meeting between the US President Trump and China’s Preisdent Xi, also boosts the funding currency status of the Euro. Meanwhile, the Asian equities are down -0.70% to -1.50% and the USD index drops -0.11% to 100.37, meandering near post-FOMC minutes low struck at 100.28.

Calendar-wise, the German factory orders are scheduled for release today alongside speeches from a number of Eurozone officials including central bank President Draghi, while ECB monetary policy minutes and the US jobless claims data will also remain in focus ahead of the Trump-Xi meeting.  

EUR/USD Technical Levels   

Technical resistances for the pair are aligned at 1.0700/13 (psychological level/ 10-DMA), 1.0744 (20-DMA) and finally 1.0817 (200-DMA). On the flip side, the spot finds next support at 1.0625 (100-DMA), a break below that level could open the door to 1.0600 (psychological level/Mar 14 low) and 1.0576/69 (classic S3/ Mar 10 low).