The EUR/USD pair extends its consolidative stage this Tuesday, confined to a 40 pips range, ever since the day started. The pair fell to a fresh low of 1.0931 early Asia, but got a boost from the RBA decision to hold rates unchanged in Australia, which resulted in a 100 pips in the AUD/USD, dragging the USD lower across the board.
Early Europe, the pair traded around the 1.0960/70 price zone and the release of the EU PPI figures for June, showed that deflation continues to hit the region, as monthly basis, the producer price index fell 0.1% against previous 0.0%. Yearly basis, it met expectations falling 2.2% against May reading of -2.0%. The data should keep the upside limited, as well as the weak tone in local share markets.
View live chart of the EUR/USD
Technically, the 4 hours chart presents quite a neutral stance, with the price a handful of pips above a bearish 20 SMA, and the technical indicators hovering around their mid-lines, neutral. Should the price advance beyond the 1.1000 level, the outlook will be more upside-constructive, with chances then of an extension up to the 1.1040/50 price zone.
The immediate support comes at 1.0920 with a break below it favoring a quick test of the 1.0880 level, ahead of the 1.0850 price zone.
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