EUR/USD Forecast: Bulls hesitate but don’t give up
EUR/USD Current Price: 1.1882
- EU June Producer Price Index was up by 10.2% YoY, missing the market’s expectations.
- The market mood is still sour, but the dollar is out of investors’ radar.
- EUR/USD could extend its gains but only once above 1.1920.
The EUR/USD pair trades in the 1.1880 price zone, mildly higher on a daily basis and still confined to familiar ranges. The market’s mood is sour, limiting advances for high-yielding assets. Yet at the same time, the greenback keeps suffering the echoes of a dovish Fed, unattractive even in risk-off scenarios.
European indexes are marginally higher, but US futures aim to open in the red as demand for government bonds persist. Yields ticked higher but remain subdued, with the yield on the 10-year US Treasury note currently around 1.17%.
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 macroeconomic calendar includes June Factory Orders, the July ISM-NY Business Conditions Index and IBD/TIPP Economic Optimism for August.
EUR/USD short-term technical outlook
The EUR/USD pair is neutral-to-bullish in the near-term but still needs to break above the 1.1920 resistance level to confirm a new leg higher. The 4-hour chart shows that the price keeps hovering around a mildly bullish 20 SMA, which advances above the longer ones. However, technical indicators lack directional strength, the Momentum stuck to its midline and the RSI at around 59.
Support levels: 1.1840 1.1790 1.1750
Resistance levels: 1.1920 1.1960 1.2000
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.
