EUR/USD Forecast: Bulls pressuring, but cautious
|EUR/USD Current Price: 1.1282
- German inflation beat estimates in June, but EU’s Economic Sentiment remained subdued.
- Equities push higher despite concerns related to soaring COVID-19 cases in the US.
- EUR/USD bullish in the short-term could extend its advance to 1.1350.
The EUR/USD pair is up this Monday, nearing the 1.1300 level ahead of the US opening. The dollar is under pressure as high-yielding assets are up, despite the absence of positive news. Speculative interest is trying to remain optimistic, although weighing bad news coming from the US, where the spread of coronavirus in the Southern States has pushed the number of new contagions to records these last few days.
Data coming from the Union resulted mixed, as German inflation beat estimates according to June preliminary estimates, recovering from 0.5% to 0.8% YoY. However, the EU Economic Sentiment Indicator for the same month printed at 75.7 from 80 in the previous month. The US, on the other hand, will publish later today May Pending Home Sales, expected to have fallen by 44.6% in the month, and the Dallas ed Manufacturing Business Index for the same month, seen at -59 from -49.2.
EUR/USD short-term technical outlook
The EUR/USD pair is trading just above the 23.6% retracement of its latest daily advance, recovering once again from near the 38.2% retracement of the same rally, mostly ranging. In the 4-hour chart, the pair is battling with a horizontal 100 SMA, although above the 20 and 200 SMA. Technical indicators, in the meantime, are advancing within positive levels, indicating increasing buying interest. The pair could accelerate its advance on a break above 1.1310, the immediate resistance, although gains beyond 1.1350 seem unlikely amid ongoing uncertainty and first-tier data scheduled for later this week.
Support levels: 1.1260 1.1220 1.1170
Resistance levels: 1.1310 1.1350 1.1350
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