EUR/USD Trades Just Above The 1.2200 Level And Is Technically Neutral

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

EUR/USD Current Price: 1.2208

• Financial markets continue to depend on how investors perceive the greenback.
• The focus shifts to US employment data ahead of the Nonfarm Payrolls report.
• EUR/USD trades just above the 1.2200 level and is technically neutral.

The EUR/USD pair trades in the 1.2210 area, recovering from a daily low of 1.2163. The American dollar surged at the beginning of the day, with government bond yields holding at higher ground and stocks struggling to post gains amid US inflation concerns coupled with upbeat local data. However, the greenback changed course after Wall Street’s opening easing alongside US Treasury yields.

On the data front,  the EU published the April Producer Price Index, which increased 1% MoM and 7.6% YoY, beating the market’s expectations.  German Retail Sales unexpectedly fell in April, down 5.5% MoM. The US calendar offered MBA Mortgage Applications for the week ended May 28, which declined 4% and the June IBD/TIPP Economic Optimism, which improved to 56.4 from 54.4 previously.

On Thursday, Markit will publish the final versions of its May Services PMIs for the EU and the US, while the latter will release the official ISM Services PMI, foreseen at 63 from 62.7 previously. The US will also publish Initial Jobless Claims for the week ended May 28, foreseen at 395K, and the ADP survey on private jobs creation, expected at 650K.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair is neutral in the near-term. The 4-hour chart shows that the price is stuck around a flat 20 SMA, while the longer moving averages have partially lost their bullish strength but hold below the current price. Technical indicators have settled just above their midlines, without directional strength. Bears would have better chances on a break below 1.2165, the immediate support level.

Support levels: 1.2165 1.2130 1.2085

Resistance levels: 1.2270 1.2310 1.2350

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.