EUR/USD analysis: weak, but dollar can´t attract buyers

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1152

Majors saw very limited action this Thursday, with the EUR/USD pair setting around 1.1150 after peaking at 1.1177 during Asian trading hours. There were no relevant macroeconomic releases but consumer confidence improved in the EU according to June preliminary estimates improved to -1.3 from previous -3.3 and beating expectations of -3.0. In the US, weekly unemployment claims ticked higher, reaching 241K for the week ended June 16th, slightly worse than the 240K expected, while the April Housing Price index advanced 0.7% in the month, unchanged from March's final reading.

In the news, Fed's Bullard said that the projected rate path was "unnecessarily aggressive," but also that the Central Bank should begin shrinking its balance sheet "sooner rather than later," hardly a surprise coming from him, while GOP leaders released their Obamacare replacement bill that still needs to pass the Congress and already has opposition among Republicans. Indeed, dark clouds ahead for Mr. Trump, and therefore for the greenback.

In the meantime, the pair continues trading uneventfully near the lower end of its last five-week range, lacking directional strength. Technically, the risk remains towards the downside, although intraday readings maintain a neutral stance, given that in the 4 hours chart, the price is hovering around the 20 and 200 SMAs, both converging around 1.1150, while technical indicators head modestly lower around their mid-lines. There's a strong support in the 1.1110/20 region, where the pair has relevant lows alongside with the 23.6% retracement of its latest bullish run, with a stronger one at 1.1075. Below this last, the pair has scope to extend its decline towards the 1.1000 critical support.

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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