EUR/USD: fresh highs on soft US data

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1207

Following a soft start to the day, the American dollar traded marginally higher against most of its major rivals following London opening, having received an unexpected boost from gold, as the safe-haven commodity plunged. There was no fundamental driver behind gold's decline, which shed nearly $20.00 in a matter of seconds. The EUR/USD pair retreated from a daily high of 1.1207, despite positive news from the region, as the German IFO came at record highs, indicating strong confidence among local business. German business climate indicator rose to 115.1 in June from 114.6, with expectations and the assessment of the current situation beating expectations.

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In the US, Durable Goods Orders for May came in worst-than-expected, putting the greenback back under pressure. Orders fell by 1.1% against an expected 0.6% decline, also below previous month's figure of 0.8%. Core Durable Goods Orders advanced by 0.1%, below the expected 0.4%, but better than a previous downwardly revised -0.5%.

The pair now trades at 1.1209, fresh daily highs, and struggling once again with its 100 SMA in the 4 hours chart, with the price having bounced from the 1.1170 region, where the 20 and 200 SMAs converge with bullish slopes. In the same chart, technical indicators have bounced from their mid-lines, but are still below previous daily highs. Should the advance extend beyond 1.1220, stops will likely be triggered, leading to a continued advance for the rest of the US session.

Support levels: 1.1165 1.1120 1.1075

Resistance levels: 1.1220 1.1260 1.1300

View Live Chart for 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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