EUR/USD Current Price: 1.1864
- The dollar cached a breath after better than expected US data.
- EU June Producer Price Index rose 10.2% YoY, missing expectations.
- EUR/USD has lost its bullish potential and could fall sub-1.1800.
The EUR/USD pair advanced to 1.1892 during European trading hours, currently trading in the 1.1860 price zone, still unable to find a certain direction. The dollar recovered some ground during US trading hours, helped by better than expected US data, although the advance was limited by a bounce in Wall Street that benefited high-yielding assets.
The EU published the June Producer Price Index, which rose 1.4% MoM as expected. The annual reading printed at 10.2%, below the market’s expectations. The US published June Factory Orders, which were up 1.5%. The August IBD/TIPP Economic Optimism printed at 53.6, down from the previous 54.3.
The macroeconomic calendar will become more entertaining on Wednesday, as the US will publish the ADP Employment report for July expected to show that the private sector added 695K new jobs. The country will also release the July ISM Services PMI, foreseen at 60.4. The EU will publish June Retail Sales, while Markit will release the final reading of its July PMIs for the EU and the US.
EUR/USD short-term technical outlook
The EUR/USD pair has lost its bullish potential in the near-term. The 4-hour chart shows that it has broken below its 20 SMA, which turned flat. Also, the pair bottomed for the day around its 200 SMA, currently at 1.1850. In the meantime, technical indicators hold near their midlines, with the Momentum recovering some ground but below its midline and the RSI heading lower at around 50. The pair has an immediate support level at 1.1840, with increased bearish potential once below it.
Support levels: 1.1840 1.1805 1.1750
Resistance levels: 1.1920 1.1960 1.2000
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