EUR/USD Forecast: Pressuring the upper end of the range
EUR/USD Current Price: 1.2192
- German’s trade balance posted a surplus of €15.9 billion in April.
- US Treasury yields keep falling, weighing on the American currency.
- EUR/USD is mildly bullish near the 1.22 figure, the momentum is limited.
The EUR/USD pair approaches the 1.2200 figure but keeps trading within familiar levels in another quiet day across the FX board. The greenback shed some ground on the back of easing US Treasury yields, as US inflation and its possible effects on the Federal Reserve’s monetary policy remains the main theme.
A scarce macroeconomic calendar exacerbates the quietness. Germany published the April Trade Balance, which posted a seasonally adjusted surplus of €15.9 billion, below expected. As for the US, the country published MBA Mortgage Approvals for the week ended on June 4, which came in at -3.1% better than the previous -4%. The country will publish April Wholesale Inventories.
EUR/USD short-term technical outlook
The EUR/USD pair trades around 1.2190, mildly bullish in the near-term. It keeps developing between ascendant moving averages, with the 100 SMA currently around the 1.2200 level. The 20 SMA turned higher, while technical indicators aim north within positive levels, although with limited strength. Gains beyond the 1.2200 figure are still seen limited as investors will likely turn more cautious ahead of Thursday’s first-tier events.
Support levels: 1.2160 1.2120 1.2070
Resistance levels: 1.2200 1.2245 1.2280
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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.
