EUR/USD analysis: consolidating near lows, bearish

EUR/USD Current price: 1.1801

  • US data mixed, EU one tepid, all confirming the scenario that triggered dollar's rally.
  • EUR/USD needs to break 1.1741, December low, to resume its decline.

The EUR/USD pair continues pivoting around 1.1800 ahead of the US opening and after the release of mixed US data. Unemployment claims in the country were slightly above expected, reaching 222K in the week ended May 11th vs. the 215K expected. The Philadelphia Fed Manufacturing Survey for May surprised to the upside, printing a solid 34.4, well above the previous 23.2 or the expected 21.0. Earlier in the day, EU Construction Output disappointed by falling more than expected, down in March 0.3%. And while none of this figures is considered a market-mover, all of them confirmed the scenario that triggered the dollar's rally these last few weeks.

In the meantime, US Treasury yields hold near multi-year highs achieved during Asian trading hours, while European equities barely stay afloat and US indexes point to open lower. The ongoing consolidation seems just a pause in the dominant bearish trend, as sellers are taking spikes to add to their positions, now aligned at 1.1840 short-term. In the 4 hours chart, the picture is bearish, despite technical indicators lack directional momentum, as they hold well into bearish territory, while moving averages maintain sharp bearish slopes well above the current level. December low at 1.1741 is the main support to break to see the pair resuming its bearish trend.

Support levels: 1.1765 1.1740 1.1710    

Resistance levels: 1.1840 1.1880 1.1925

View Live Chart for the EUR/USD

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.