EUR/USD Current Price: 1.0702

  • May preliminary S&P Global PMIs indicated economic slowdown across Europe.
  • Stocks struggle to post gains as inflation and growth concerns linger.
  • EUR/USD battles 1.0700 while retaining its near-term bullish stance.

The EUR/USD pair keeps advancing on Tuesday, so far hitting an intraday high of 1.0735. The shared currency keeps benefiting from European Central Bank Christine Lagarde’s words, as the leader of the central bank made it clear that the negative monetary policy is coming to an end.

Nevertheless, macroeconomic data put a halt to the recovery as it revived growth-related concerns. S&P Global released the preliminary estimates of its May PMIs.  Most European manufacturing and services indexes came in below the market’s expectation, except for the German ones, which were slightly better than April ones. The EU services PMI came down to 56.3 from 57.7 in the previous month, while the manufacturing index printed at 54.4 below the 54.9 expected. The US session will bring the S&P Global PMIs for the country, April New Home Sales and the May Richmond Fed Manufacturing Index.

Ahead of Wall Street’s open, European indexes trade in the red, although off their early lows. Demand for safety, in the meantime, is pushing government bond yields lower.

EUR/USD short-term technical outlook

The EUR/USD pair has met buyers around the 38.2% retracement of its latest daily decline at 1.0670. The daily chart shows that the 20 SMA converges with the next Fibonacci support level at 1.0545, while the longer ones maintain their bearish slopes far above the current level. Technical indicators have lost their bullish momentum, but remain within positive levels.

According to the 4-hour chart, the risk remains skewed to the upside. The pair is comfortably trading above all of its moving averages, with the 20 SMA heading firmly higher between the longer ones. Technical indicators, in the meantime, consolidate near their recent highs, with the RSI holding within overbought levels.

The 50% retracement of the aforementioned decline comes at  1.0770 a breakout level as the mid-term perspective could turn bullish once the pair establish above it.

Support levels: 1.0670 1.0615 1.0565

Resistance levels: 1.0735 1.0770 1.0810

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.

Feed news Join Telegram

Recommended Content

Recommended Content

Editors’ Picks

EUR/USD flirts with 1.0600 amid risk rebound, ECB news

EUR/USD flirts with 1.0600 amid risk rebound, ECB news

EUR/USD is trading near 1.0600, extending the advance, as the safe-haven US dollar trips amid a positive shift in risk sentiment. The euro cheers the news that the ECB may unveil a new bond-buying scheme to cap yields/spreads in July. ECB-speak, US data awaited. 


GBP/USD bounces towards 1.2300 amid renewed USD selling

GBP/USD bounces towards 1.2300 amid renewed USD selling

GBP/USD is bouncing back towards 1.2300, capitalizing on the renewed selling in the US dollar across the board. The risk recovery is weighing on the dollar, despite the rebounding Treasury yields. Brexit and UK political woes remain a drag on the pound. US data eyed. 


Gold sticks to gains near $1,825, upside potential seems limited

Gold sticks to gains near $1,825, upside potential seems limited

Gold attracted some dip-buying on Tuesday and reversed a part of the overnight sharp retracement slide from the very important 200-day SMA. Gold held on to its modest gains through the early European session and was last seen trading above the $1,825 level.

Gold News

LUNA 2.0 price is primed for 60% rally

LUNA 2.0 price is primed for 60% rally

LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!