EUR/USD Forecast: Increased bearish pressure, but still in range
|EUR/USD Current Price: 1.1211
- US Federal Reserve’s head Powell cautiously optimistic about the economy.
- EU inflation recovered to 0.3% YoY in June, according to preliminary estimates.
- EUR/USD at risk of falling, immediate support at 1.1170.
The EUR/USD pair struggles to hold above the 1.1200 level ahead of the US opening, as the greenback is generally stronger against its major rivals, on the back of encouraging words from Fed’s chief Jerome Powell. While he remarked the “extraordinary uncertainty” to the economic outlook related to the ongoing pandemic, some macroeconomic figures are pointing in the right direction. Cautious but optimistic, the Fed’s chief provided support to the greenback.
The EU published the preliminary estimate of June inflation, which rose by 0.3% when compared to a year earlier, better than anticipated. The core reading, however, retreated to 0.8% as expected. The US session will bring Chicago PMI for June, foreseen at 45, and Consumer Confidence. As mentioned, US Fed’s Powell will testify alongside Treasury Secretary Mnuchin.
EUR/USD short-term technical outlook
The EUR/USD pair continues to trade within familiar levels, offering a neutral-to-bearish short-term stance. In the 4-hour chart, the pair remains below all of its moving averages, with a bearish 20 SMA capping advances. Technical indicators head lower, although the Momentum remains around its midline, indicating limited selling interest.
Support levels: 1.1170 1.1125 1.1080
Resistance levels: 1.1230 1.1270 1.1310
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