EUR/USD Current Price: 1.1896
- Major pairs kept moving alongside sentiment, paying little attention to data.
- US CB Consumer Confidence jumped to 127.3 in June, much better than expected.
- EUR/USD has room to extend its advance, mainly once below 1.1840.
The American dollar strengthened ahead of the US opening, with EUR/USD extending its slide to 1.1877, its lowest in a week. Demand for the greenback eased after Wall Street’s opening, despite US data being upbeat. The CB Consumer Confidence index jumped to 127.3 in June, much better than the 119.0 expected. The dollar moved alongside US government bond yields, which peaked at 1.51% but trimmed gains as US indexes reached fresh all-time highs but ended the day mixed not far from their opening levels.
The EU published the June Economic Sentiment Indicator, which improved to 117.9 from 114.5 in the previous month. The German Consumer Price Index edged lower in June, according to preliminary estimates, printing at 0.4% MoM and 2.3% YoY. On Wednesday, the EU will publish the preliminary estimate of June inflation, while in the US, the focus will be on the ADP Survey on private jobs creation, foreseen at 600 K in June from 978K in the previous month.
EUR/USD short-term technical outlook
The EUR/USD pair bounced from the mentioned daily low but settled below the 1.1900 level, which favors a bearish continuation. The pair bottomed at 1.1846 last week, with a clear break below the area opening the door for an extension toward the 2021 low at 1.1703. Technical readings in the 4-hour chart favor a continued decline, as the pair is developing below a mildly bearish 20 SMA, while technical indicators maintain their bearish slopes within negative levels.
Support levels: 1.1840 1.1795 1.1750
Resistance levels: 1.1920 1.1980 1.2025
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 assets. 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 Open Markets 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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.