The EUR/USD pair is trading at a fresh 2-day high, with the dollar retreating particularly against its European rivals. Fundamental releases came out mixed in Europe, as German Markit Manufacturing PMI for May resulted below expected and below April figures, signaling a slowdown in the private sector output growth. The EU manufacturing data however, advanced above expected as the PMI printed 52.3 against 52 previous, albeit Services figures for the region, missed expectations.
Nevertheless, the EUR/USD pair surged and the 4 hours chart shows that the price is pressuring the 1.1170 resistance, whilst the technical indicators head north from overbought readings, still below their mid-lines. The current recovery seems corrective at this point, as the 20 SMA heads strongly south above the current price, offering dynamic resistance in the 1.1225 price zone, the probable bullish target if the price breaks above the mentioned 1.1170. Additional gains later on the day are unlikely, although it somehow the dollar continues easing, 1.1250 is the next level to watch.
The immediate support is located at 1.1120, with a downward acceleration below it exposing a continued decline to the 1.1050/70 price zone.
View live chart of the EUR/USD
Nevertheless, the EUR/USD pair surged and the 4 hours chart shows that the price is pressuring the 1.1170 resistance, whilst the technical indicators head north from overbought readings, still below their mid-lines. The current recovery seems corrective at this point, as the 20 SMA heads strongly south above the current price, offering dynamic resistance in the 1.1225 price zone, the probable bullish target if the price breaks above the mentioned 1.1170. Additional gains later on the day are unlikely, although it somehow the dollar continues easing, 1.1250 is the next level to watch.
The immediate support is located at 1.1120, with a downward acceleration below it exposing a continued decline to the 1.1050/70 price zone.
View live chart of the EUR/USD
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