EUR/USD Is Bullish Despite The Limited Bullish Momentum, Eyes On 1.2349

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EUR/USD Current Price: 1.2227

• US markets were closed on Monday amid Memorial Day.
• Markit will publish the final readings of its May Manufacturing PMIs.
• EUR/USD is bullish despite the limited bullish momentum, eyes on 1.2349.

The EUR/USD pair advanced on Monday to 1.2230 as the greenback remained on the backfoot. The UK and the US had their markets closed amid different local holidays, but other European markets and Canada worked normally. A light macroeconomic calendar and month-end flows were behind the dollar’s slide.

Germany published the preliminary estimate of May inflation figures, which were better than anticipated. The Consumer Price Index was up 2.5% YoY and 0.5% MoM. The EU published M3 Money Supply that contracted to 9.2% YoY in April, missing the market’s expectations. On Tuesday, Markit will publish the final readings of its May’s Manufacturing PMIs, while the EU will release the preliminary estimate of May inflation figures. The US will also publish the May ISM Manufacturing PMI, foreseen unchanged from the previous month at 60.7.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair trades near the daily high heading into the Asian opening, with the risk skewed to the upside. The 4-hour chart shows that it managed to advance above its 20 SMA, which lacks directional strength. However, the longer moving averages maintain their bullish slopes below it. Technical indicators lack directional strength, consolidating within positive levels. Further gains will likely extend towards the 1.2350 price zone, as the pair topped this year at 1.2349.

Support levels: 1.2200 1.2165 1.2130  

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.