The bulls could give it another try

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Current price EUR / USD: 1.2194

  • Investor confidence in EU Sentix improved to 28.1 in June from 21 previously.
  • Comments by Treasury Secretary Janet Yellen on inflation temporarily boosted the greenback.
  • EUR / USD calls into question the determination of bears around the 1.2200 figure.

The greenback edged down on Monday, with EUR / USD hitting a daily high of 1.2201 and settling nearby. The pair edged out Wall Street comments amid comments from US Treasury Secretary Janet Yellen, who said on Sunday that higher interest rates would be a “plus,” though he was quick to make it clear that she did not expect higher spending levels to cause inflation to exceed. The dollar fell after Wall Street opened as there was no sign of growing concern among US traders. Equities posted modest gains, while government bond yields remained weak.

The calendar had little to offer. The EU released Sentix investor confidence in June, which improved more than expected to 28.1 from 21 the month before. The United States released April Consumer Credit Change, which stood at $ 18.61 billion, up from $ 25.84 billion previously.

On Tuesday, the focus will be on the German ZEW Economic Sentiment Survey for June. The country will also release April industrial production, while the EU will release the final reading of the first quarter gross domestic product, expected unchanged at -0.6%. The United States will release April’s merchandise trade balance.

Short-term technical outlook EUR / USD

EUR / USD offers a neutral to bullish position in the short term. The 4-hour chart shows technical indicators have entered positive levels with Momentum still heading north and RSI stable at around 57. The pair has advanced above all of its moving averages, which are missing anyway of sufficient directional force to suggest a certain direction. . The bulls may have a better chance on a clear break of the 1.2200 level.

Support levels: 1.2120 1.2070 12025

Resistance levels: 1.2200 1.2245 1.2280

See live VSheart for EUR / USD

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