EUR/USD Current Price: 1.1255
- EU Consumer Confidence improved to -14.7 in June, according to preliminary estimates.
- Wall Street advanced and weighed on the dollar, despite rising concerns rising coronavirus cases in the US.
- EUR/USD is trading between Fibonacci levels, bullish potential slowly increasing.
The greenback edged lower this Monday, with the EUR/USD pair hitting a daily high of 1.1269 during the American afternoon. The American dollar found some favor at the beginning of the day amid the dismal mood that kept Asian equities trading in the red throughout the session. European ones followed the lead, but the focus shifted to a continued increase in coronavirus cases in the US across the South, West, and Midwest. Wall Street, however, managed to grind higher, adding to the dollar’s weakness.
The shared currency found support in the preliminary estimate of June Consumer Confidence as it improved to -14.7 from -18.8. US data, on the other hand, was mixed, as the Chicago Fed National Activity Index for May improved to 2.61 from -17.89 in the previous month, but New Home sales plunged 9.7% in the same month.
This Tuesday, Markit will release the preliminary estimates of its June PMIs for the EU and the US. Manufacturing activity and services output is expected to have continued to recover over the month, although in all cases, the numbers are expected within contraction levels. Nevertheless, recoveries in-line with the market’s expectations will be seen as good news. The US will also publish the June Richmond Fed Manufacturing Index and May New Home Sales.
EUR/USD short-term technical outlook
The EUR/USD pair has been trading between Fibonacci levels, finding support at around the 38.2% retracement of its latest daily advance, but unable to move beyond the 23.6% retracement of the same rally at 1.1270. The short-term picture skews the risk to the upside, as, in the 4-hour chart, the pair has managed to recover beyond its 20 SMA, although moving averages continue to lack directional strength. Technical indicators, in the meantime, re-entered positive ground with a limited bullish momentum. The bullish case will be firmer on a clear break above the immediate Fibonacci resistance level.
Support levels: 1.1225 1.1170 1.1120
Resistance levels: 1.1270 1.1310 1.1350
View Live Chart for the EUR/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD retreats toward 1.0850 despite weak US employment data
EUR/USD loses its traction and declines toward 1.0850 after testing 1.0900 earlier in the session. Because Nonfarm Payrolls data for October missed the market expectation by a wide margin due to hurricanes and strikes, the US Dollar manages to hold its ground.
GBP/USD climbs above 1.2950, looks to end week little changed
GBP/USD benefits from the improving risk mood and trades in positive territory above 1.2950 in the American session on Friday as markets ignore the weak labor market data from the US. The pair remains on track to end the week flat.
Gold clings to small gains near $2,750 after US data
Gold clings to marginal recovery gains and trades slightly above $2,750. The 10-year US Treasury bond yield struggles to push higher after the dismal October jobs report and weaker-than-expected PMI data from the US, helping XAU/USD keep it footing.
Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results
Bitcoin could experience a price pullback in the next few days ahead of the US presidential election, analysts say, an event that will be key to determining whether and how the crypto class will be regulated in the years to come.
Bank of Japan holds rates steady amid signs of modest GDP growth
Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.