EUR/USD flirts with highs near 1.1720 ahead of key US docket

• The pair stays bid above the 1.1700 handle on Monday.
• The greenback trades on the defensive in the mid-94.00s.
• US Retail Sales coming in next seconded by the Empire State index.

The shared currency keeps the bid tone intact at the beginning of the week, with EUR/USD advancing moderately towards the 1.1700 handle.

EUR/USD attention on US calendar

The pair is adding to Friday’s gains and moved above the 1.1700 milestone.

The breakout, however, seems to lack of sustainability for the time being, all amidst a vacuum of data in Euroland and a generalized bias towards the risk-off sentiment.

The greenback, instead, remains on the back footing at the beginning of the week, flirting with the mid-94.00s when tracked by the US Dollar Index (DXY), all amidst the usual backdrop of trade jitters and some better mood in the US money markets.

In addition, market participants will look for headlines from the meeting between President Trump and President V.Putin in Helsinki.

Looking ahead, US Retail Sales for the month of June are due next seconded by the Empire State manufacturing gauge. The greenback is poised to remain in centre stage during the first half of the week in light of key data releases and the semi-annual testimony by Chief J.Powell before Congress on Tuesday and Wednesday.

EUR/USD levels to watch

At the moment, the pair is gaining 0.27% at 1.1716 and a break above 1.1718 (monthly low Dec.12 2017) would target 1.1735 (55-day sma) en route to 1.1792 (high Jul.9). On the other hand, the immediate support aligns at 1.1657 (21-day sma) seconded by 1.1615 (low Jul.13) and finally 1.1527 (low Jun.29).