EUR/USD Bounces Modestly From Sub-1.1900, Could Keep Falling In The Near-Term

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EUR/USD Current Price: 1.1908

• Demand for the greenback continued after the Fed’s hawkish surprise.
• The EU Consumer Price Index was confirmed at 2% YoY in May.
• EUR/USD bounces modestly from sub-1.1900, could keep falling in the near-term.

The EUR/USD pair fell further on Thursday, reaching a daily low of 1.1891, a level that was last seen early in April. The dollar kept ruling on the heels of the US Federal Reserve monetary policy decision, as the central bank surprised with a hawkish stance, hinting at possibly two rate hikes in 2023 while upwardly reviewing its growth and inflation forecasts. Stocks showed a late reaction to the latest Fed’s stance, edging sharply lower during the US afternoon.

The EU published May inflation figures. The Consumer Price Index was confirmed at 2% YoY, while the core reading resulted at 1%, slightly better than anticipated. As for the US, the country published the June Philadelphia Fed Manufacturing Survey, which printed at 30.7, below the 31 expected. Initial Jobless Claims for the week ended June 11 unexpectedly jumped to 412K, worse than the 359K expected. The macroeconomic calendar will include on Friday the German May Producer Price Index and the EU April Current Account. The US won’t publish relevant data.

EUR/USD short-term technical outlook

The EUR/USD pair bounced from the mentioned low, heading into the Asian session trading around 1.1910. The pair has reached extreme oversold conditions in the near-term, and a corrective advance is not out of the table, although bears retain control. The 4-hour chart shows that the pair has broken below all of its moving averages, with the 20 SMA heading south below the longer ones. Technical indicators are bouncing modestly from extreme readings but hold within oversold levels.

Support levels: 1.1890 1.1850 1.1810

Resistance levels: 1.1950 1.1980 1.2030

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.