EUR/USD analysis: advancing in dull trading

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1713

EUR/USD near key Fibonacci resistance, not enough momentum at the time being.
US June Retail Sales were soft, but upward revisions to May's figures offset the headlines.

The EUR/USD pair retreats modestly from a daily high of 1.1725 ahead of the US opening, with markets extremely quiet this Monday. Asian shares post modest advances, although, with Japan closed, movements were uneventful. European shares trade marginally lower, but close to their opening levels, while US futures are poised to open lower. Seems market players are in cautious mode, waiting for trade-war headlines before deciding next move. The US just released June Retail Sales, up 0.4% as expected, although the control group reading came in flat. May figures were upwardly revised, offsetting the not-so-convincing June figures. The New York Empire State Manufacturing Index came in at 22.6 for July, beating market's forecast of 22.

The EUR/USD pair presents a mild bullish short-term tone, as in the 4 hours chart, it managed to advance above its moving averages, which anyway converge directionless in a tight range, while technical indicators advanced within positive territory, although the RSI is now losing upward strength, hovering around 57. The pair met sellers around a major Fibonacci resistance and seems unlikely it could easily break it in the current quiet scenario, but if it does, the rally can extend up to the 1.1750/60 price zone.

Support levels: 1.1690 1.1660 1.1620

Resistance levels: 1.1725 1.1755 1.1790

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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