EUR/USD analysis: holding near yearly highs

EUR/USD Current price: 1.1476

Majors started the week in slow motion, as a holiday in Japan, combined with a scarce macroeconomic calendar, sent investors to the sidelines ahead of first tied data to be released later this week, including among others, the ECB monetary policy decision. The American dollar closed mixed, although not far from its Friday's closing levels and looking vulnerable across the board. The EUR/USD pair fell to a daily low of 1.1434,  but recovered towards its recent highs near 1.1490, ending the day a few pips below this last. In the data front, EU June inflation was confirmed at 1.3% yearly basis, down from 1.4% in May, remaining unchanged in the month. In the US, the Empire State manufacturing survey showed that business activity grew by less than expected in July, with the index down to 9.8 from 19.8 in July and the expected 15.0.

From a technical point of view, the pair retains its long-term positive tone, but remains unable to confirm a bullish breakout, still struggling around 1.1460, from where the pair retreated multiple times since January 2015. In the 4 hours chart, the pair met buying interest on an approach to a flat 20 SMA, while the RSI indicator aims higher, currently around 63, but the Momentum lost upward strength, holding anyway within positive territory. An upward acceleration through 1.1490 should see an upward extension towards 1.1615 May 2016 high, while beyond this last the next level to watch is 1.1713, August 2015 high.

Support levels: 1.1420 1.1380 1.1340

Resistance levels: 1.1490 1.1525 1.1560

View Live Chart for the EUR/USD

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