EUR/USD clings to gains around 1.0850

• EUR/USD starts the week on the positive note near 1.0850.
• Risk appetite remains bolstered by re-opening of economy in Europe.
• EMU, Germany advanced Q1 GDP figures coming up later in the week.

The upbeat momentum in the shared currency remains well and sound at the beginning of the week, with EUR/USD hovering around the 1.0850 region.

EUR/USD looks to coronavirus, data

EUR/USD is advancing for the third session in a row on Monday, managing to gain some composure following last week’s lows in the 1.0770/65 band, although a test/surpass of the key barrier at 1.0900 the figure still remains elusive for EUR-bulls.

In the meantime, investors’ sentiment continues to look to the developments from the coronavirus for near-term direction as well as progress on the gradual re-opening of some economies in the Old Continent.

Data wise in the region, Industrial Production in the euro area is due on Wednesday ahead of final inflation figures in Germany on Thursday and key flash Q1 GDP figures in Germany and the broader Euroland on Friday.

What to look for around EUR

The euro appears to have met some decent contention in sub-1.0800 levels so far in a context of poor results from fundamentals in the region and a broad-based consolidation theme. In the meantime, the attention in Euroland stays on the re-opening of some economies and the somewhat renewed optimism on the back of shrinking infected cases and deaths by the COVID-19, particularly in Spain and Italy.

EUR/USD levels to watch

At the moment, the pair is gaining 0.06% at 1.0841 and a breakout of 1.0950 (55-day SMA) would target 1.1019 (weekly/monthly high May 1) en route to 1.1026 (200-day SMA). On the other hand, the next down barrier emerges at 1.0766 (weekly low May 7) seconded by 1.0727 (monthly low Apr.24) and finally 1.0635 (2020 low Mar.23).