EUR/USD Forecast: neutral, buyers waiting for dips

Valeria Bednarik FXStreet

The EUR/USD pair trades uneventfully around its Friday's close, with little in the macroeconomic calendar to take care of, beyond a couple of Fed speakers in the US afternoon. Focus today is on Brexit negotiations, as both parts, the EU and the UK will try to agree the steps they will take for an orderly exit of the kingdom from the Union.

French President Emmanuel Macron´s party, alongside with his allies, won a parliamentary majority, as with nearly all votes counted, he starts his leadership with over 300 sits out of 577 in the National Assembly. However, positive French news have little effect on the common currency, although are backing a strong relief rally on local equities, alongside with the latest Greek bailout news.

The technical outlook is neutral short term, as the price hovers around its 20 and 100 SMAs, whilst technical indicators head marginally lower within neutral territory, indicating limited buying interest at the time being. Still, retracements towards 1.1100 have been seen as buying opportunities, as speculative interest is not ready to buy back the greenback.

The immediate resistance comes at 1.1220, the level to surpass to see further gains up to the 1.1260 region first, and 1.1300 later. Supports for today are located at 1.1160, where the first line of buyers will surge, with the next around 1.1110, May 18th low.

View live chart of the EUR/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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