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• EUR/USD recovered from last week’s downside but remains hung up on 1.0730.
• As USD flows turned lower, Euro traders shrugged off a miss in German data.
• Tuesday restricted to mid-tier releases and a fistful of central planner speeches.

EUR/USD drifted up in a mild recovery from last Friday’s dip into 1.0670. The new trading week is kicking things off with risk appetite firmly pinned higher, sending the US Dollar lower and bolstering the Euro as investors head into a relatively quiet Tuesday.

Key economic data releases are relegated to later in the week, leaving traders to focus on statements from policymakers that dot the landscape until meaningful data releases kick off in the back half of the trading week. An update to US Gross Domestic Product (GDP) figures is slated for Thursday, with Friday rounding out the trading week with German Retail Sales and the latest update for US Personal Consumption Expenditure (PCE) Price Index inflation.

Tuesday’s economic calendar is notably restrained, with an appearance expected from German central bank President Joachim Nagel. During Tuesday's US market session, Federal Reserve (Fed) officials are expected to give several speeches, and central planners will likely lean into middling Fedspeak in echoes of Monday’s performances.

German sentiment surveys broadly missed expectations early Monday, but Euro markets are flaunting downside EU figures to follow the broader market higher as risk appetite continues to pin to hopes of at least a quarter-point cut from the Federal Open Market Committee’s (FOMC) September 18 rate call. According to the CME’s FedWatch Tool, rate traders are pricing in around 70% odds of a 25 basis point rate trim from the Fed in September.

EUR/USD technical outlook
 

EUR/USD pulled higher after walking back last Friday’s dip into 1.0670, but bullish momentum hit a snag after intraday bids got hung up on the 200-hour Exponential Moving Average (EMA) at 1.0737. EUR/USD still remains on the low side on daily candles, with price action trading on the bearish side of the 200-day EMA at 1.0815.

EUR/USD hourly chart
 

EUR/USD daily chart
 

EUR/USD
 

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