EUR/USD Forecast: Pressuring the upper end of its latest range
|EUR/USD Current Price: 1.1322
- The financial world started the week with an upbeat mood in hopes of an economic bounce.
- US ISM Non-Manufacturing PMI, seen up in June to 50, could further boost optimism.
- EUR/USD is bullish in the short-term, needs to clear the 1.1330 price zone.
The EUR/USD pair is trading near the upper end of its 4-week range, as risk-appetite dominates financial markets. The upbeat sentiment was triggered by Chinese authorities’ optimism on post-pandemic economic progress, which led to soaring Asian indexes. European ones followed suit, while US ones are sharply higher ahead of the opening.
The market ignored worse than anticipated German Retail Sales, which plunged by 29.3% YoY in May. The EU sales in the same period, however, declined by 5.1% YoY, better than anticipated. The Union also released the July Sentix Investor Confidence, which came in at -18.2 vs. the -10.9 expected. Investors are waiting for the US ISM Non-Manufacturing PMI, foreseen in June at 50 from 45.4 in the previous month.
EUR/USD short-term technical outlook
The EUR/USD pair is trading in the 1.1320 region, and bullish, according to intraday readings. To confirm a new leg higher, the pair would need to accelerate through the 1.1340 level, as it has met sellers in the 1.1330 price zone. Technical readings in the 4-hour chart support an upcoming advance, as the pair is developing above all of its moving averages, with the 20 SMA crossing above the 100 SMA for the first time since mid-June. Technical indicators, in the meantime, head firmly higher within positive levels.
Support levels: 1.1270 1.1220 1.1170
Resistance levels: 1.1340 1.1385 1.1425
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