EUR/USD Heads Higher In The Near-Term, But It Is Still Far From Turning Bullish

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EUR/USD Current Price: 1.1948

• Fed Chair Powell´s testimony on the covid crisis maintained investors in a good mood.
• EU Consumer Confidence came in at -3.3 in June, according to preliminary estimates.
• EUR/USD heads higher in the near-term, but it is still far from turning bullish.

The EUR/USD pair advanced to a fresh weekly high of 1.1952 during the US afternoon amid a better market’s mood. US indexes extended their Monday’s recovery and flirted with record highs, while government bond yields remained subdued. The focus was on US Federal Reserve chief Jerome Powell, who testified before the House of Representatives on the Fed’s response to the pandemic. Powell remarked the sustained economic improvement amid speedy immunization in the country, and down-talked inflationary pressures.

 Data coming from the US was encouraging, as Existing Home Sales were down 0.9% in May, improving from the previous -2.7%. The June Richmond Fed Manufacturing Index came in at 22, from 18 in May. The EU published the preliminary estimate of June Consumer Confidence which printed at -3.3, worse than the expected -3. On Wednesday, Markit will publish the preliminary estimates of its June PMIs for the EU and the US. The reports are expected to show persistent economic expansion.

EUR/USD short-term technical outlook

The EUR/USD pair finished the day above the 61.8% retracement of the March/May rally at around 1.1920, the immediate support level. The 4-hour chart shows that the pair has advanced above a now flat 20 SMA while holding below the longer ones. The Momentum indicator advances just above its 100 line while the RSI hovers around 48, indicating restricted buying interest. The corrective advance could continue toward 1.2000, where selling interest may reappear.

 Support levels: 1.1920 1.1885 1.1840  

Resistance levels: 1.1960 1.2000 1.2045

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.