EUR/USD Analysis: bulls hesitating around 1.1200

Valeria Bednarik FXStreet

EUR/USD Current price: 1.1195

Risk-averse sentiment eases, helping equities and high-yielding currencies to recover some ground.
First-tier events later this week likely to keep currencies within familiar levels these days.

The EUR/USD pair advanced within range, trading close but below the 1.1200 figure ahead of US data and Wall Street's opening. The week started in slow motion, although with risk aversion leading the way. The pair gapped lower early Asia, following trade-related news that spurred the negative sentiment, although the greenback was unable to sustain the positive momentum, easing despite falling equities and government bond yields.

Data released in the Union failed to impress, as the final versions of the May Markit Manufacturing PMI matched the market's expectations. The German index printed 44.3, while for the whole EU, output activity resulted at 47.7. The US session will bring the country's Markit Manufacturing PMI, seen unchanged from the preliminary estimate of 50.6, and the official ISM Manufacturing Index, foreseen at 53.0 vs. the previous 52.8.

The EUR/USD pair offers a short-term bullish stance, as, in the 4 hours chart, it's trading above all of its moving averages, advancing above the 200 SMA for the first time since mid-May. The 20 SMA is gaining upward traction at around 1.1150, although it lacks enough momentum. Technical indicators advance within positive ground, nearing overbought readings, favoring a bullish continuation. The immediate resistance is now 1.1220, with the bullish potential set to increase once above the level.

Support levels: 1.1150 1.1105 1.1070

Resistance levels: 1.1220 1.1250 1.1290

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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