EUR/USD Current Price: 1.2120
- EU Industrial Production improved by more than anticipated in April.
- Stock markets are consolidating around Friday’s closing levels.
- EUR/USD in recovery mode but lacking directional momentum.
The EUR/USD pair is marginally higher at the beginning of the week, trading above the 1.2100 threshold. Trading across the FX board is limited amid a scarce macroeconomic calendar and as investors prepare for the US Federal Reserve monetary policy decision, to be out on Wednesday.
Stocks markets offer no many clues, as European indexes trade within positive levels, although a handful of points away from their daily openings. US Treasury yields hold near their recent lows, unchanged on a daily basis.
Data wise, the EU published April Industrial Production, which improved 0.8% MoM and 39.3% YoY, much better than anticipated. The US won’t publish macroeconomic data this Monday.
EUR/USD short-term technical outlook
The EUR/USD pair has limited bullish potential, according to intraday technical readings. The 4-hour chart shows that the pair keeps developing below all of its moving averages, with the 20 SMA maintaining its bearish slope and about to cross below the 200 SMA. Technical indicators are recovering from oversold readings, still within negative levels. The pair could resume its decline on a break below 1.2092, the monthly low and the immediate support level.
Support levels: 1.2090 1.2050 1.2010
Resistance levels: 1.2125 1.2160 1.2200
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