EUR/USD continues to move sideways above 1.2100 after US data

EUR/USD struggles make a decisive move in either direction on Tuesday.
US Dollar Index retreats to 90.50 after renewing monthly highs.
Retail Sales in US declined by 1.3% in May.

Eren Sengezer FXStreet

After staying stuck in a very tight range during the Asian trading hours, the EUR/USD pair reached a daily high of 1.2148 in the European session. Although the pair dropped toward 1.2100 with the USD gathering strength in the second half of the day, it managed to stage a rebound and was last seen posting small daily gains at 1.2125.

USD holds steady ahead of FOMC policy announcements

Earlier in the day, the data published by Eurostat showed that the euro area's trade surplus widened to €9.4 billion (seasonally adjusted) in April. Nevertheless, this reading was largely ignored by market participants.

On the other hand, the US Census Bureau reported on Tuesday that Retail Sales in May declined by 1.3%, missing the market expectation for a decrease of 0.8%. Furthermore, the monthly publication released by the Fed revealed that Industrial Production grew by 0.8%, compared to analysts' estimate of 0.6%.

With the initial market reaction to the mixed US data, the US Dollar Index (DXY) advanced to a fresh monthly high of 90.67 but struggled to preserve its bullish momentum. At the moment, the DXY is up 0.08% on the day at 90.57. The modest losses witnessed in Wall Street's main indexes seem to be helping the index stay in the positive territory.

There won't any other macroeconomic data releases from the US in the remainder of the day and the pair is likely to extend its sideways grind ahead of the FOMC's monetary policy announcements on Wednesday.

Technical levels to watch for

EUR/USD

Overview
Today last price	1.2119
Today Daily Change	0.0000
Today Daily Change %	0.00
Today daily open	1.2119

Trends
Daily SMA20	1.2186
Daily SMA50	1.2089
Daily SMA100	1.2042
Daily SMA200	1.1992

Levels
Previous Daily High	1.213
Previous Daily Low	1.2094
Previous Weekly High	1.2218
Previous Weekly Low	1.2093
Previous Monthly High	1.2266
Previous Monthly Low	1.1986
Daily Fibonacci 38.2%	1.2117
Daily Fibonacci 61.8%	1.2108
Daily Pivot Point S1	1.2099
Daily Pivot Point S2	1.2079
Daily Pivot Point S3	1.2063
Daily Pivot Point R1	1.2135
Daily Pivot Point R2	1.2151
Daily Pivot Point R3	1.2171

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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