EUR/USD Current Price: 1.1912
- US Treasury yields remain subdued, eyes on a 10-year note auction.
- EU Retail Sales surprised to the upside, up by 3% MoM in February.
- EUR/USD is technically bullish but lacks enough momentum in the near-term.
The EUR/USD pair trades above the 1.1900 level as the dollar is back under selling pressure. The week started with a dismal market mood, which helped the greenback and sent the pair to a daily low at 1.1870. European indexes trade mostly in the red, although off their daily lows, providing modest support to the pair, which anyway remains confined to familiar levels.
Expectations on higher US inflation were somehow cooled by comments from Fed’s chief Jerome Powell last week, which in turn resulted in lower US Treasury yields. That on the 10-year note has stayed below 1.70% for most of the previous week, currently at 1.67%. The US calendar includes an auction of 10-year bonds today and a speech from US Federal Reserve Eric Rosengren.
Earlier in the day, the EU published February Retail Sales, which were up by 3% MoM, beating the market’s expectations. The yearly figure printed at -2.9%, better than the -5.2% expected.
EUR/USD short-term technical outlook
The EUR/USD pair is near its recent high at 1.1927, the immediate resistance. The risk is skewed to the upside, although the bullish potential seems limited in the near-term. The 4-hour chart shows that the pair is struggling with a bearish 200 SMA while above a bullish 20 SMA. Technical indicators have bounced from their midlines but without strength enough to confirm a new leg higher. The bullish path will be clearer on a break above 1.1930.
Support levels: 1.1870 1.1825 1.1785
Resistance levels: 1.1930 1.1965 1.2000
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