EUR/USD Analysis: pressure continues, 1.1106 exposed
|EUR/USD Current price: 1.1152
- Risk aversion weighs on the shared currency, headed to yearly lows against the greenback.
- German unemployment rose in May to 5.0% adding to the sour tone of the EUR.
The EUR/USD pair extended its slide down to 1.1147 so far this Wednesday, with the pair still developing within limited intraday ranges, yet slowly but steadily losing ground. The sour tone is the result of the risk-averse ruling sentiment, with equities in the red worldwide and government bonds on the rise. Furthermore, Germany released May unemployment data, not usually a big market mover, yet given that the unemployment rate rose to 5.0% from 4.9%, investors are more willing to get rid of the shared currency.
The US also released a minor figure, MBA Mortgage Applications fell by 3.3% in the week ended May 24, with no effects on the dollar's price. Pending of release is the Richmond Fed Manufacturing Index, foreseen at 6 in May vs. the previous 3. That said, sentiment will keep leading the way for currencies.
The pair bounced from the 61.8% retracement of its latest advance, holding just above the level yet with a firmly bearish stance according to the 4 hours chart, developing well below bearish moving averages and with technical indicators retaining their downward strength at 1-week lows. The mentioned Fibonacci support comes at 1.1145, providing an immediate short-term support, with a break below it exposing the yearly low at 1.1106.
Support levels: 1.1145 1.1105 1.1070
Resistance levels: 1.1180 1.1220 1.1245
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