EUR/USD analysis: buyers pause, but didn't give up

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1181

The American dollar took a breather on Friday, but remained generally weak last week. The release of an upward revision for Q1 figures, in this case, GDP and better-than-expected figures for the beginning of Q2, in the form of Durable Goods Orders, somehow in line with Fed's idea that soft data at the beginning of the year was transitory. The EUR/USD pair ended marginally lower at 1.1181, retreating from a fresh 2017 of 1.1267. The pair has had a hard time holding above the 1.1200 figure these last few days, indicating that buying interest has eased, although demand for the greenback remained subdued.

The upcoming week will start with the US and the UK on holidays, anticipating limited volumes for Monday, and with a scarce macroeconomic calendar. Still, the month will kick in halfway, with fresh German and US inflation figures on Tuesday, and the Nonfarm Payroll report to close the week.

Technically, the daily chart supports some further corrective declines ahead, as the pair stalled its advance just shy of the critical 1.1300 level, and as mentioned above, is having trouble now to advance beyond the 1.1200 figure. Technical indicators in the mentioned time frame are beginning to correct from overbought territory, although the 20 DMA maintains its strong bullish slope, currently at 1.1060. In the shorter term, the pair retains the neutral-to-bearish stance seen on previous updates, with the price below a modestly bearish 20 SMA and indicators heading nowhere around their mid-lines. 1.1160 is the immediate support, with a downward acceleration through it favoring a decline down to the 1.1060/80 price zone.

Support levels: 1.1160 1.1120 1.1080

Resistance levels: 1.1220 1.1260 1.1300

View Live Chart for the EUR/USD

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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