EUR/USD Keeps Pressuring Its Recent Highs, Higher Highs On The Table

EUR/USD Current Price: 1.2158

• The American dollar maintained its intrinsic weakness as risk-on faded.
• The EU will release a revision of Q1 GDP on Tuesday, foreseen unchanged at -0.6% QoQ.
• EUR/USD keeps pressuring its recent highs, higher highs on the table.

The greenback remained under selling pressure at the beginning of the week, with EUR/USD reaching 1.2168, a three-day high. The market’s optimism suffered a setback ahead of Wall Street’s opening, with the dollar recovering some ground on the back of higher government yields and the poor performance of equities.

However, a scarce macroeconomic calendar kept major pairs within limited intraday ranges. The EU didn’t release macroeconomic figures, while the US published the May  NY Empire State Manufacturing  Index, which came in at 24.3, better than the 23.9 expected. Federal Reserve Vice Chairman Richard Clarida was on the wires, but as he did not refer to monetary policy, his words passed unnoticed.

On Tuesday, the EU will publish a revision of Q1 Gross Domestic Product, foreseen unchanged at -0.6% and the March Trade Balance. As for the US, the country will publish April Building Starts and Housing Permits. Also, ECB’s President Christine Lagarde will offer a speech and may comment on monetary policy.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair ended the day modestly up in the 1.2150 price zone, retaining its near-term positive stance. The 4-hour chart shows that the pair holds above all of its moving averages, with the longer ones maintaining their bullish slopes below a flat 20 SMA. The Momentum indicator eased within positive levels, while the RSI indicator consolidates at around 62, reflecting absent demand for the American currency. The pair needs to clear its monthly high at 1.2181 to recover its bullish potential.

Support levels: 1.2110 1.2070 1.2025

Resistance levels: 1.2180 1.2240 1.2290

View Live Chart for the EUR/USD

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