EUR/USD Forecast: Bulls pressure but 1.2200 stands in the way

EUR/USD Current Price: 1.2180

• German data was mixed, with the ZEW Survey on Economic Sentiment unexpectedly contracting.
• The US Goods Trade Balance printed at $-68.9 billion in April.
• EUR/USD is advancing within range, could extend gains once above 1.2200.

The EUR/USD pair was incapable of surpassing the 1.2200 threshold, and slowly retreats from the area this Tuesday. However, volatility is quite limited across the FX board as investors wait for first-tier events to be out later in the week. Stocks are up, while US government bond yields fell to fresh weekly lows, putting pressure on the greenback.

Data coming from the EU was mixed. Germany published April Industrial Production, which contracted by 1% MoM, missing expectations. The annual reading posted a whopping 26.4% increase. The country published its June ZEW Survey, which showed that the Economic Sentiment unexpectedly contracted to 79.8 from 84.4. For the EU, the sentiment index resulted at 81.3, better than the 77 expected, although below the previous 84.4.

The EU also published a revised version of the Q1 Gross Domestic Product, which resulted better than anticipated at -0.3% QoQ from -0.6% previously. The US published the April Goods Trade Balance, which printed at $-68.9 billion, much better than anticipated and contracting from the previous $-75 billion.

EUR/USD short-term technical outlook

The EUR/USD pair trades around 1.2180, aiming to extend its advance in the near-term. The 4-hour chart shows that it keeps trading between mildly bullish 100 and 200 SMAs, while the 20 SMA maintains its bearish slope but below the current level. Technical indicators advance within positive levels with the Momentum accelerating north and reflecting increased buying interest.

Support levels: 1.2160 1.2120 1.2070  

Resistance levels: 1.2200 1.2245 1.2280  

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