EUR/USD analysis: Bearish pressure persists despite recovery

Matías Salord FXStreet

EUR/USD Current price: 1.0606

A quiet start of the week for financial market after Friday’s lower-than-expected US employment and with concerns about geopolitics. Despite all that, Wall Street continue to trade in the range of the previous days and US bond yields fell modestly. Volatility is likely to rise during Tuesday’s Asian session. It will be a short week, with liquidity expected to decline after Wednesday.

The economic calendar contribute to the calm environment in market. Janet Yellen was schedule to speak near Wall Street closing bell and it could influence on the USD. On Tuesday attention would to the German ZEW survey and Eurozone industrial production data while in the US no relevant report is due.

The EUR/USD pair rose modesty on Monday not before reaching fresh monthly lows. The recovery was limited and the euro, so far, has been unable to hold above 1.0600. The bearish pressure persist. Only if it rises above 1.0625, 20-SMA in 4-hour charts, the euro could gain momentum for a more sustain recovery. Technical indicators are turning flat affected by limited price action moves. The consolidation could continue during the next hours, with price moving between 1.0620 and 1.0570. A break below 1.0570 could open the doors for a test of 1.0520/25, that is the support zone before the 1.0490/1.0500 key level.

Support levels: 1.0565 1.0520 1.0490

Resistance levels: 1.0625 1.0670 1.0705

View Live Chart for the EUR/USD

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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