EUR/USD Analysis: mute around 1.1200 in thin trading
|EUR/USD Current price: 1.1195
- Slow start to the week with no data and holidays in the US and the UK.
- European Parliamentary elections saw pro-EU parties retaining two-thirds of the seats.
The EUR/USD pair lost the 1.1200 level this Monday, although it trades in a well-limited range around the figure, amid reduced activity due to holidays in the UK and the US. European Parliamentary elections took place during the weekend, showing that the centrist bloc lost the majority, with greens and eurosceptics adding seats, although pro-EU parties held onto roughly two-thirds of the seats, neutralizing the negative effects of increased anti-EU parties. A holiday in the UK and the absence of European data exacerbated the quietness around the pair during the first half of the day. The scenario will remain the same in US trading hours, as the world's largest economy also celebrates a holiday that will keep banks and the NYSE closed.
The pair trades just below a key Fibonacci resistance, the 61.8% retracement of the latest daily slump at around 1.1200, after hitting an early high of 1.1214. The short-term picture favors an upward move, although the pair would need to surpass 1.1220 to confirm it, as, in the 4 hours chart, the pair is holding above a flat 100 SMA while the 20 SMA maintains its bullish slope below the larger one. Also, technical indicators are trying to resume their advances after a limited downward corrective movement within positive levels.
Support levels: 1.1175 1.1140 1.1100
Resistance levels: 1.1220 1.1245 1.1280
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