EUR/USD Current Price: 1.1318
- Fears of a second wave of coronavirus contagions weighed on the market’s mood.
- German ZEW survey expected to show a bounce in business sentiment in June.
- EUR/USD bullish potential limited in the short-term as long as below 1.1310.
The week started with investors in risk-off mode, amid growing concerns of a second wave of coronavirus contagions, and as protests continue in the US. The country has reported almost 9,500 new cases in the last 24 hours, while there are 16,700 critical cases in the country. Also, China put at least ten cities in strict lockdown amid a new outbreak of COVID-19. Asian shares were sharply lower, while European ones also closed in the red, although off daily lows. The greenback benefited just modestly from the dismal mood, with EUR/USD falling to 1.1226. The pair recovered within US trading hours, as Wall Street trimmed losses and rallied into the green, as the Fed will begin buying corporate bonds to support the market’s liquidity.
In the data front, the EU released the April Trade Balance, which posted a seasonally adjusted surplus of €1.2 B, much worse than the anticipated €22.9 B. The US, on the other hand, has just released the June NY Empire State Manufacturing Index, which came in at -0.2, much better than the expected -27.5 and improving from -48.5 in May. This Tuesday, the attention will be on the June German ZEW Survey, as the Economic Sentiment in the country is seen improving to 60 from 51 in the previous month. The US, on the other hand, will publish May Retail Sales, seen up by 8.0% after printing at -16.4% in April.
EUR/USD short-term technical outlook
The EUR/USD pair trades in the 1.1320 price zone as the day comes to an end, above the 23.6% retracement of its latest daily advance. The short-term picture still shows a limited bullish potential, as, in the 4-hour chart, it is moving above a bearish 20 SMA, while technical indicators advance, although the RSI around 55 and the Momentum still within negative levels. Friday’s daily high comes at 1.1350, the immediate resistance, with a retest of the recent high at 1.1422 becoming more likely once above the level. Bears seem to have to wait, as the pair is closer to retest its recent highs than of breaking lower.
Support levels: 1.1300 1.1260 1.1215
Resistance levels: 1.1340 1.1385 1.1420
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
GBP/USD rises to near 1.2540, driven by higher UK GDP
GBP/USD edged higher to near 1.2540 during Asian hours on Friday, buoyed by the release of higher-than-expected UK Gross Domestic Product (GDP) data for the first quarter.
EUR/USD: The crucial resistance level will emerge at the 1.0790–1.0800 region
The EUR/USD pair trades on a softer note near 1.0775 during the early European hours on Friday. The downtick of the major pair is supported by the renewed US Dollar demand amid hawkish comments from Federal Reserve officials.
Gold price attracts some buyers despite hawkish Fedspeak
Gold price edges higher for the second consecutive day on Friday. Weak employment data bolstered the speculation that the weakening economy would force the Fed to cut rates.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Rate cut optimism fuelled by higher US jobless claims
With Federal Reserve policy acting as the primary driver of investor sentiment in 2024, renewed optimism surrounding the possibility of rate cuts has propelled the Dow to its most significant rally since December.