EUR/USD Neutral In The Near-Term, Losing Its Bullish Potential

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EUR/USD Current Price: 1.1925

• Markit preliminary PMIs indicated continued growth in the EU and the US in June.
• US Gross Domestic Product expected to be confirmed at 6.4% in Q1.
• EUR/USD neutral in the near-term, losing its bullish potential.

The EUR/USD pair hit an intraday high of 1.1969 within the last trading session of the day, retreating afterwards to close the day pretty much unchanged in the 1.1920 price zone. The dollar gained as the market’s sentiment turned sour. European indexes closed mostly in the red, while US one also fell following the release of tepid local data.

Markit published the preliminary estimates of its June PMIs, most of which beat expectations. The manufacturing index improved to 64.9 in Germany, while the EU one printed at 63.1, beating the market’s forecast. The services sector grew at a faster-than-anticipated pace, with the German index jumping to 58.1 from 52.8 in the previous month. In the US, however, services output contracted to 64.8 from 70.4, missing expectations, although the manufacturing index expanded to 62.6. New Home Sales unexpectedly fell 5.9% in May, amid record prices.

On Thursday, Germany will publish the IFO Business Climate for June, foreseen at 100.6. The US will unveil May Durable Goods Orders, seen up by 2.7%, and the final reading of Q1 GDP, expected to be confirmed at 6.4%. The country will also publish weekly unemployment claims as usual.

EUR/USD short-term technical outlook

The EUR/USD pair is technically neutral in the near-term. The pair holds a few pips above a critical Fibonacci level at 1.1920, with a break below it hinting at a fresh leg south. The 4-hour chart shows that the 20 SMA maintains a modest bullish slope below the current level, while the longer ones keep heading south far above it. Technical indicators have turned flat around their midlines, reflecting limited buying interest.

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.