FXStreet (Barcelona) – Valeria Bednarik, Chief Analyst at FXStreet, explains that EUR/USD’s upside advance found some additional support after US CPI came out below expectations, and in spite of technicals losing upward strength, a higher move towards 1.1466 might be expected in the pair.
Key Quotes
“The dollar extended its decline this Thursday, weighed by Wednesday’s FOMC economic policy announcement. There were no relevant fundamental releases in Europe, exception made by more doom headlines coming from Greece and its creditors, as IMF Lagarde, set that the last date to reach a deal is June 30th, something the market already knew.”
“The EUR/USD pair advanced up to 1.1419, with the European opening maintaining its gains and consolidating ahead of US inflation figures for May that resulted worse than expected: annual inflation came out at 0.4% against expectations of a 0.5% increase, whilst the annual reading came out flat at 0.0%. Also, weekly unemployment claims resulted better than expected at 267K for the week ending June 12, but poor inflation figures were enough to trigger another round of dollar selling.”
“The pair extended its advance after the release, maintaining a short term bullish tone, as the 1 hour chart shows that the technical indicators are resuming their advances, whilst the price holds above a strongly bullish 20 SMA.”
“In the 4 hours chart, the technical indicators are losing their upward strength well above their mid-lines, although higher highs support an upward continuation towards 1.1466 last May high.”
“Support levels: 1.1385 1.1350 1.1320”
“Resistance levels: 1.1465 1.1490 1.1530”
(Market News Provided by FXstreet)