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• EUR/USD rose on Tuesday, but remains capped by 1.1300.
• Despite a near-term recovery, the Euro remains down from recent highs against the Greenback.
• US PMI figures will be the key data release this week.

EUR/USD caught a bounce for a second day in a row on Tuesday, bolstering the pair back toward the 1.1300 handle. Despite a near-term rise in bullish momentum bolstering the Fiber, EUR/USD remains well back from recent multi-year highs near 1.1575. The pair has found a firm technical floor from key moving averages, and overall market sentiment remains hopeful that traders will be able to keep finding reasons to hit the buy button.

Tariffs dominate market perception, but US data looms ahead
 

European policymakers are currently wrapped up in G7 meetings, minimizing the trickle of noteworthy headlines from key EU decision-makers. Overall market sentiment remains entirely hinged on trade headlines from the US, with investors hoping that deals will be struck with the Trump administration that will encourage President Donald Trump and his staffers to take the tariff gun away from their own economy’s head. Despite the overall upbeat tone in global markets, the steady drift into the unknown is beginning to limit bullish sentiment. The Trump administration is rapidly approaching its own self-imposed 90-day deadline on its own “reciprocal tariffs” package. While some potential trade deals have been announced, nothing concrete has been forthcoming.

It will be a limited data docket on Wednesday, with only mid-tier data on the offering on both sides of the Pacific. US Purchasing Managers Index (PMI) figures are expected to come in mixed on Thursday. US Manufacturing PMI in May is expected to tick down to 50.1 from 50.2, while the Services component is seen holding flat at 50.8.
 

EUR/USD price forecast
 

Fiber rose four-tenths of one percent against the Greenback on Tuesday, pushing EUR/USD within touch range of the 1.1300 handle. The pair is still riding out a halting but determined bullish bounce from the 50-day Exponential Moving Average (EMA) just below 1.1100, but bullish price momentum still has a long way to go to reclaim multi-year highs north of 1.1500 posted in April.

EUR/USD daily chart
 

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