EUR/USD Forecast: Concerns weigh, the dollar still unattractive

Valeria Bednarik FXStreet

EUR/USD Current Price: 1.1293

German Industrial Production missed the market’s expectations in May.
Worldwide new coronavirus cases trigger alarms among speculators.
EUR/USD changed course after briefly piercing the 1.1270 support.

The EUR/USD pair fell to a daily low of 1.1258 during the European morning, further retreating from the top of its latest range. The dollar’s recovery was linked to a deteriorated market’s mood, amid coronavirus-related concerns, as the number of new cases in the US continues to increase, and Australia announced a six-week lockdown in the Melbourne area to contain the latest outbreak.

German data added pressure on the shared currency, as Industrial Production missed the market’s expectations, up by 7.8% in the month and down by 19.3% when compared to a year earlier. The pair bounced from the mentioned low, as demand for the dollar lost momentum, with equities recovering from intraday lows but still trading in the red. The US will have a light calendar as it will publish the IBD/TIPP Economic Optimism for July and the May JOLTS Job Openings.

EUR/USD short-term technical outlook

The EUR/USD pair is struggling around 1.1290, maintaining a moderate positive bias, as it quickly recovered after piercing the 23.6% retracement of the latest daily advance at 1.1270, the immediate support. In the 4-hour chart, the pair is holding above all of its moving averages, while technical indicators bounced from around their midlines.

Support levels: 1.1270 1.1220 1.1170

Resistance levels: 1.1310 1.1345 1.1390

View Live Chart for the EUR/USD

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.

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