EUR/USD Current Price: 1.2140
- The risk-on mood fades, with government bond yields on the rise.
- A light macroeconomic calendar keeps sentiment as the main market motor.
- EUR/USD is losing bullish strength but holds on to the higher ground.
The EUR/USD pair extended its advance this Monday to a daily high of 1.2168, now in retreat mode. The risk-on mood that took over financial markets on Friday prevailed at the weekly opening, although it fades somehow ahead of Wall Street’s opening, as European equities fell as government bond yields advance. Nevertheless, the greenback remains weak, mainly against European and safe-haven rivals.
Data wise, the day is relatively light. The Union didn’t publish relevant figures, while the US will offer the May NY Empire State Manufacturing Index, previously at 26.3. The focus will remain on inflationary pressures, measured through yields’ behavior, and its possible effects on future US Federal Reserve’s decisions.
EUR/USD short-term technical outlook
The EUR/USD pair trades around 1.2140, losing bullish strength but far from turning bearish. The 4-hour chart shows that the pair keeps trading well above its moving averages, with the 20 SMA flat but the longer ones maintaining their bullish slopes. Technical indicators lack directional strength but remain within positive levels. The risk of a bearish turn would increase on a break below 1.2110, the immediate support level.
Support levels: 1.2110 1.2070 1.2025
Resistance levels: 1.2180 1.2240 1.2290
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