EUR/USD analysis: dollar benefits from lackluster calendar

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1151

The American dollar edged higher this Monday, favored by hawkish comments from Fed´s Dudley towards normalization of monetary policies and a scarce macroeconomic calendar. The EUR/USD failed to regain the 1.1200 level, peaking at 1.1212 before turning south, to settle around its daily low 1.1150. The EU released its construction output figures for April, up in the month by 0.3% after falling 1.1% in March, with the YoY reading coming in at 3.2%, down from previous 3.6%. The common currency was unable to attract buyers, despite in the political front, relief news kept coming. After Greece reached an agreement with its creditors last week, French President Emmanuel Macon's party and his allies secured an absolute majority in the National Assembly, with over 300 of the total of 577 seats. In the US, Fed's Dudley spoke at the North Country Chamber of Commerce, in Plattsburgh, offering a confidence stance over inflation and employment, aligned with latest FOMC's Minutes. Dudley said inflation should pick up as wages rise along with continuing improvement in the labor market.

The EUR/USD pair heads into the Asian session with a neutral-to-bearish stance in the short term, having remained contained by its 100 SMA in the 4 hours chart, flat around 1.1220. In the same chart, the price extended below a now bearish 20 SMA, whilst the Momentum indicator stands pat around its 100 level as the RSI heads modestly lower in the 40 region, this last anticipating some additional declines ahead. Still buying interest may surge on an approach to 1.1110, May 30th low and the immediate support, with a critical one standing at 1.1075, the low set on May 18th.

Support levels: 1.1110 1.1075 1.1030

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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