EUR/USD analysis: battling around 1.2200, bearish

EUR/USD Current price: 1.2202
- Soft EU data and steady yields keep the USD near weekly highs.
- US data to have a little saying on the trend.

Ahead of the US opening, the EUR/USD pair continues trading uneventfully around 1.2200, contained by short-term selling interest around 1.2220, where the pair found sellers ever since the day started. Adding pressure to the common currency was another piece of discouraging European data, as the German IFO survey showed that business confidence deteriorated further, with the index down to 102.1 from a previous downwardly revised to 105.7. The greenback seems comfortable near its weekly highs across the board, but the rally stalled amid government bond yields stabilizing. The US will release New Home Sales for March after the opening, seen bouncing after the previous months' slump. It will also release the Richmond Fed Manufacturing Index for April, foresee at 16 from the previous 15. Is quite likely, however, that data will be again ignored and equities and yields will lead the way.
Technically, the pair maintains its bearish stance, trading below all of its moving averages and with the shortest accelerating south below the largest, also below the daily ascendant trend line broken yesterday. The Momentum indicator aims to recover near oversold readings, but the RSI indicator resumed its decline, currently at 23, overall maintaining the risk leaned to the downside. As commented earlier, a strong static support is at 1.2160, while below it, the next strong level comes at 1.2100, where the pair set its yearly high in 2015 and 2017. Resistances today are at 1.2223, the daily high, followed by the 1.2250 region. A steady recovery beyond 1.2260 could see the pair extending up to 1.2300.
Support levels: 1.2160 1.2135 1.2100
Resistance levels: 1.225 1.2250 1.2300
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.

















