EUR/USD Price Forecast: Buyers need a reason to push it higher
EUR/USD Current price: 1.1433
- EU Sentix Investor Confidence improved in June to 0.2 from the -8.1 posted in May.
- Financial markets await news from the undergoing US-China trade talks.
- EUR/USD pressures weekly highs but lacks directional momentum in the near term.
The EUR/USD pair trades at the upper end of its recent range, finding an intraday top at around 1.1440, yet holding nearby. The US Dollar (USD) strengthened throughout the first half of the day amid optimism the United States (US) and China are closer to resolve trade tensions.
Top representatives from both countries met in London on Monday, and announce late in the American session that the discussion will continue on Tuesday. Ahead of a definition, the positive sentiment faded, yet not reverted. The USD turned south as European stocks struggle to advance, with major indexes trading mixed around their opening levels.
Data-wise, the Eurozone (EU) released the June Sentix Investor Confidence index, which improved from 0.2 from the -8.1 posted in May. The American session won’t bring relevant data, with the focus on the May Consumer Price Index (CPI) scheduled for release on Wednesday.
EUR/USD short-term technical outlook
From a technical point of view, the daily chart shows EUR/USD could extend gains, as buyers hold the grip. Technical indicators in the mentioned time frame lack directional momentum, but hold well above their midlines. At the same time, a mildly bullish 20 Simple Moving Average (SMA) gains upward traction at around 1.1330, while far above the longer ones.
The near-term picture is neutral-to-bullish. The EUR/USD pair keeps seesawing around a flat 20 SMA, currently above it, yet still not confirming a clear bullish breakout. The 100 and 200 SMAs aim higher below the current level, in line with the dominant bullish trend. Finally, technical indicators turned north, but hold around their midlines, falling short of confirming an advance.
Support levels: 1.1385 1.1340 1.1310
Resistance levels: 1.1450 1.1490 1.1525
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
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.
