EUR/USD Current Price: 1.1934
- German’s GFK Consumer Confidence Survey improved in July to -0.3 from -6.9 previously.
- The US June Michigan Consumer Sentiment Index was downwardly revised to 85.5.
- EUR/USD could turn bearish amid the lack of follow-through beyond 1.1920.
The EUR/USD pair closed the week with gains in the 1.1930 price zone, consolidating on Friday for a third consecutive day. The American dollar shed ground at the beginning of the week, correcting the extreme overbought conditions achieved post-Fed, but the slide lacked follow-through. The pair advanced to 1.1974 as risk appetite underpinned high-yielding currencies, with Wall Street advancing to record highs. The greenback recovered ahead of the close, helped by soaring US government bond yields.
On Friday, Germany published the GFK Consumer Confidence Survey, which improved in July to -0.3 from -6.9 in the previous month. The US released the May Core Personal Consumption Expenditures Price Index, which advanced to 3.4% YoY as expected, reviving concerns about the US mounting inflationary pressures. The June Michigan Consumer Sentiment Index was downwardly revised to 85.5. The macroeconomic calendar has nothing to offer on Monday.
EUR/USD short-term technical outlook
The EUR/USD pair settled a handful of pips above the 61.8% retracement of the March/May rally at around 1.1920. The daily chart shows that the risk is skewed to the downside, as the pair is developing below all of its moving averages, with the 20 SMA accelerating south above the longer ones. Technical indicators have corrected the extreme oversold reading witnessed in the previous week but resumed their declines within negative levels. In the 4-hour chart, a mildly bullish 20 SMA provided dynamic support, but the pair is currently pressuring it. Technical indicators turned lower but remain within neutral levels. A break below the mentioned Fibonacci support level should confirm a bearish extension in the near-term.
Support levels: 1.1920 1.1885 1.1840
Resistance levels: 1.1980 1.2025 1.2070
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.