EUR/USD Is At Risk Of Accelerating Its Slump, Mainly On A Break Below 1.2090

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EUR/USD Current Price: 1.2117

EU Industrial Production picked up in April, up by 0.8% MoM.
US indexes edged lower while Treasury yields picked up as the focus stays on the Fed.
EUR/USD is at risk of accelerating its slump, mainly on a break below 1.2090.

The EUR/USD pair is up at the start of the week, trading in the 1.2120 price zone. The dollar advanced against safe-haven rivals but eased against those considered high-yielding despite US Treasury yields advanced, and Wall Street turned red. The macroeconomic calendar had no impact on currencies, as the EU published April Industrial Production, which improved 0.8% MoM and 39.3% YoY, much better than anticipated. The focus is on the US Federal Reserve monetary policy’s decision to be out on Wednesday.

On Tuesday, Germany will publish the May Consumer Price Index, expected to be confirmed at 2.5% YoY, while the EU will release the April Trade Balance. The US will unveil May Retail Sales, foreseen down by 0.8.

EUR/USD short-term technical outlook

The EUR/USD has recovered from a monthly low of 1.2092, but its bullish potential is limited. The 4-hour chart shows that the pair held below all of its moving averages, with the 20 SMA heading firmly lower and crossing below the 200 SMA. Technical indicators turned lower within negative levels and after correcting overbought conditions, indicating absent buying interest. Further declines could be expected on a break below 1.2092, the monthly low.

Support levels: 1.2090 1.2050 1.2010

Resistance levels: 1.2130 1.2170 1.2210

View Live Chart for the EUR/USD

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.

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