EUR/USD analysis: EU inflation up next
EUR/USD Current price: 1.1147
The EUR/USD pair fell down to 1.1131 this Thursday, with the greenback extending its Wednesday's gains against most of its major rivals. Dollar's buying pick up pace after London's opening, with European currencies weighed by the sour tone of local equities, and soft local data. The euro area recorded a €17.9B surplus in trade in goods with the rest of the world in April 2017, compared with €26.6B a year earlier, also down from March's early figure of €30.9B. US data was mixed, with the NY Empire State manufacturing index up to 19.8 in June after falling 1 point in the previous month, and the Philadelphia one printing 27.6, beating expectations of 24.0. Initial Jobless claims for the week ended June 9th were down to 237K from previous 245K, but Industrial Production came flat in May, with the capacity of utilization down to 76.6% from previous 76.7%, this last, interrupting dollar's advance.
The pair is technically bearish short term, poised to extend its decline this Friday, particularly on a break below 1.1109, May 30th low and the immediate support. Supporting the decline are technical readings in the 4 hours chart, with the price extending below its 20 and 100 SMAs, while technical indicators head south near oversold readings. The next big support comes at 1.1075, the low set on May 18th, level that if gets broken, will likely open doors for a steeper correction towards the 1.1000 threshold, especially if EU May inflation, set to be released this Friday, misses expectations.
Support levels: 1.1110 1.1075 1.1030
Resistance levels: 1.1160 1.1200 1.1245
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.
