EUR/USD Keeps Trading Within Familiar Levels, The Short-Term Picture Is Neutral

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EUR/USD Current Price: 1.1934

• The German IFO Survey showed that the Business Climate improved to 101.8 in June.
• US Gross Domestic Product was confirmed at 6.4% QoQ in the first quarter of the year.
• EUR/USD keeps trading within familiar levels, the short-term picture is neutral.

The EUR/USD pair advanced modestly at the beginning of the day but trimmed gains during US trading hours to settle around the 1.1930 level. The dollar advanced despite a prevalent positive mood, probably backed by  US President Joe Biden’s announcement, as he said that they reached a bipartisan deal on the infrastructure spending plan.

Data wise, Germany published the June IFO Survey, which showed that the Business Climate improved to 101.8, beating the market’s expectations. The assessment of the current situation and expectations were also up. The US released Initial Jobless Claims for the week ended June 19 printed at 411K, while the previous weekly figure was revised to 418K. Durable Goods Orders were up 2.3% in May, both missing the market’s expectations. The Q1 Gross Domestic Product was confirmed at 6.4%.

On Friday, Germany will publish the July GFK Consumer Confidence Survey, foreseen at -4. The US will publish May Personal Spending and Personal Income figures, including core PCE inflation, the Fed’s most-watched number.

EUR/USD short-term technical outlook

The EUR/USD pair keeps trading just above the 61.8% retracement of its March/May rally. The near-term picture is neutral, as the pair is trading just above a mildly bullish 20 SMA, while the longer moving averages accelerated their slides well above the current level. Technical indicators head nowhere, stuck around their midlines. Bulls could have a chance if the pair breaks above 1.1980, the 50% retracement of the mentioned rally.

Support levels: 1.1920 1.1885 1.1840  

Resistance levels: 1.1980 1.2025 1.2070

Image Sourced from Pixabay

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.