Euro stalls below 1.1650 with all eyes on US JOLTS Job Openings

The Euro (EUR) appreciates higher against the US Dollar (USD) on Tuesday, although the pair remains capped below 1.1650. Hot Eurozone inflation figures have failed to provide any significant support to the Euro, and the focus shifts now to the US JOLTS Job Openings, the first of an array of US indicators scheduled for this week.

The Eurozone Harmonised Index of Consumer Prices (HICP) grew by 3.2% year-over-year (YoY) in May, up from 3% in April, according to preliminary data released by Eurostat on Tuesday. The core HICP rose by 2.5%, faster than April's 2.2% advance and above the 2.4% market consensus. The Euro was little moved after the data release, as markets have already priced in a European Central Bank (ECB) rate hike after next week's monetary policy meeting.

On the geopolitical front, a ceasefire between Israel and Hezbollah in Lebanon has lifted market sentiment on Tuesday and contributed to the moderate Euro recovery. Investors, however, remain on edge after Tehran announced the suspension of peace talks with the US on Monday due to violations of the ceasefire.

Later on the day, the US JOLTS Job Openings are expected to show a mild increase to 6.88 million in April from 6.86 million in March. These figures are unlikely to trigger a sharp USD volatility, but might set the tone for Wednesday's ADP Employment Change and, more importantly, Friday's Nonfarm Payrolls report. On Monday, May's ISM Manufacturing Purchasing Managers Index (PMI) figures showed a healthy expansion of business activity, providing reasons for the Federal Reserve to tighten its monetary policy if inflation pressures keep growing.

Technical Analysis: Key resistance remains at 1.1660

EUR/USD trades at 1.1646, holding a broadly neutral near-term stance as it consolidates near the top of the recent trading range. The Relative Strength Index (RSI) shows a balanced momentum, while the Moving Average Convergence Divergence (MACD) keeps wavering around zero, hinting that upside attempts may continue to meet supply as price approaches higher levels.

The technical picture is little changed from previous days, with Euro bulls capped below the mentioned range top, at 1.1660 (May 18, 27, and 28 highs). Above here, the next targets are the May 14 high, at 1.1720, and May's peak, in the 1.1790 area. Bearish attempts, on the contrary, are likely to find support at Monday's lows, near 1.1610, ahead of the range bottom, in the 1.1575 area.

(The technical analysis of this story was written with the help of an AI tool.)