EUR/USD Current price: 1.0725
- The German IFO Business Climate survey missed expectations in June.
- The better tone of Wall Street helped EUR/USD to stay afloat in the second half of the day.
- EUR/USD loses its upward steam, could pierce the 1.0700 threshold.
The EUR/USD pair saw little action on Monday, confined to a tight 50 pips range. The US Dollar found demand at the beginning of the day, resulting in the pair bottoming at 1.0681. It recovered, advancing with Wall Street up to 1.0745, where sellers reappeared. EUR/USD settled in the 1.0720 price zone, holding on to modest gains.
The macroeconomic calendar had little to offer, although Germany published the June IFO Business Climate survey, which unexpectedly fell to 88.6 from 89.3 in May, missing the 89.7 expected. The assessment of the current situation and expectations sub-indexes also missed the market’s estimates. Across the pond, the United States (US) unveiled the Dallas Fed Manufacturing Business Index, which improved to -15.1 in June from -19.4 in the previous month.
In the absence of significant headlines, major pairs followed stock markets, which reflected the market mood. Following a cautious stance in Asia, markets seemed more optimistic after the American opening, as the three major US indexes posted gains.
On Tuesday, the Eurozone macroeconomic calendar will have little to offer, while the US will publish housing-related figures and June CB Consumer Confidence. The latter is foreseen at 100.0, contracting from the previous 102.0. Later in the week, investors will look at the Federal Open Market Committee (FOMC) meeting Minutes and the US Personal Consumption Expenditures (PCE) Price Index.
EUR/USD short-term technical outlook
The daily chart for the EUR/USD pair shows further advances seem unlikely. The pair remains below all its moving averages, with a bearish 20 Simple Moving Average (SMA) crossing below directionless 100 and 200 SMAs, all of them in the 1.0780/90 price zone. At the same time, technical indicators have barely recovered from near oversold readings, maintaining modest upward slopes, although far below their midlines.
In the near term, and according to the 4-hour chart, the risk increasingly turns to the downside. EUR/USD develops above its 20 SMA, which anyway maintains a bearish slope. The 100 and 200 SMAs also head south while above the current level. Finally, technical indicators lost their upward strength after testing their midlines and slowly turn south, in line with another leg lower.
Support levels: 1.0710 1.0665 1.0620
Resistance levels: 1.0760 1.0810 1.0840
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD retreats to 1.0700 area following post-PCE jump
After spiking to a daily high of 1.0720 with the immediate reaction to US PCE inflation data, EUR/USD lost its traction and declined to the 1.0700 area. Investors remain cautious ahead of this weekend's French election and make it difficult for the Euro to gather strength.
GBP/USD stays below 1.2650 after US inflation data
GBP/USD struggles to preserve its bullish momentum and trades below 1.2650 in the American session on Friday. Earlier in the day, the data from the US showed that the annual core PCE inflation declined to 2.6% in May, limiting the USD's upside and helping the pair hold its ground.
Gold keeps its daily gains near $2,330 following US PCE data
Gold prices maintain their constructive bias around $2,330 after US inflation readings gauged by the PCE matched consensus in May and US yields advance slightly across the curve.
BTC struggles around the $62,000 level
Bitcoin price faces pullback resistance at the lower band of the descending wedge around $62,000. Ethereum price finds support at $3,288, the 61.8% Fibonacci retracement level. Ripple price faces resistance at $0.500, its daily resistance level.
French Elections Preview: Euro to suffer after the calm, as specter of extremists, uncertainty rise Premium
The first round of French parliamentary elections is set to trigger high uncertainty. Soothing messages from the far right and far left leave the Euro vulnerable to falls. Calm may return only after the second round of voting on July 7.