EUR/USD Current Price: 1.2037
- Investors ignored discouraging EU macroeconomic data, focused on hopes.
- US Treasury yields seesawed between gains and losses, posted a modest intraday uptick.
- EUR/USD retains its bullish stance after surpassing the 1.2000 threshold.
The EUR/USD pair surged to 1.2047, its highest since early March, currently trading in the 1.2030 price zone. Investors sold the greenback amid persistent hopes for a soon-to-come economic bounce following the pandemic slump. The positive mood was reflected by falling government bond yields and fresh records in Wall Street, although, for a change, the wider movements were seen across the FX board. In the American afternoon, US indexes retreated from highs while Treasury yields recovered, barely enough to prevent the dollar from falling further.
The macroeconomic calendar had little to offer, as the EU published the February Current Account, which posted a seasonally adjusted surplus of €25.9 billion, missing expectations. Construction Orders in the same month was down by 2.1% MoM, also below forecast. The US did not release macroeconomic figures. On Tuesday, Germany will unveil the March Producer Price Index, while the US calendar will have nothing relevant to offer.
EUR/USD short-term technical outlook
The EUR/USD pair bottomed in the American session at 1.2014, now the immediate support. The near-term picture indicates that bulls are in charge, although a corrective decline is not out of the cards. The 4-hour chart shows that the 20 SMA heads firmly higher above the longer ones, while the 100 SMA is finally gaining upward traction. The Momentum indicator advances within positive levels, while the RSI has lost bullish traction, consolidating near overbought readings.
Support levels: 1.1995 1.1940 1.1900
Resistance levels: 1.2045 1.2090 1.2130
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