EUR/USD Current Price: 1.2150
- US Retail Sales showed no growth in April, while consumer sentiment contracted in May.
- Stocks recovered, and government bond yields eased amid cooling tightening expectations.
- EUR/USD has recovered its bullish potential but needs to break above 1.2181.
The EUR/USD pair advanced on Friday, as dismal US data cooled tightening expectations and put the greenback under selling pressure. The pair trimmed most of its weekly losses to finish it pretty much unchanged around 1.2050. US Retail Sales showed no growth in April, down from 10.7% in the previous month, while the core reading fell 1.5%. Also, the preliminary estimate of the Michigan Consumer Sentiment Index resulted in 82.8 in May, down from the previous 88.3 and the expected 90.4. Also, Industrial Production rose a modest 0.7% in April.
The softer-than-anticipated figures helped equities bounce amid hopes from continued easy money coming from the Federal Reserve. On the other hand, government bond yields retreated from the highs reached after the release of higher-than-expected US inflation.
The week will start in slow motion in the data front, as the EU won’t publish macroeconomic data, while the US calendar includes the May NY Empire State Manufacturing Index and a speech from Fed’s vice-chair Clarida.
EUR/USD short-term technical outlook
The daily chart for the EUR/USD pair indicates that further gains are likely, mainly if the pair breaks above 1.2181, May’s monthly high. Technical indicators bounced within positive levels while the pair met buyers around a bullish 20 SMA, which keeps heading north above the longer ones. In the 4-hour chart, the pair settled above its moving averages, while technical indicators recovered positive ground, although the bullish momentum is limited. Nevertheless, the risk is also skewed to the upside. The daily 20 SMA stands around 1.2070, and bulls will likely retain control as long as the level holds.
Support levels: 1.2110 1.2070 1.2025
Resistance levels: 1.2180 1.2240 1.2290
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.