EUR/USD Is On A Bullish Path And Poised To Extend Gains Towards 1.2349

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EUR/USD Current Price: 1.2225

• Markit upwardly revised its Manufacturing PMIs for the EU and the US.
• Stocks surged as investors returned to their trading desks, but yields also advanced.
• EUR/USD is on a bullish path and poised to extend gains towards 1.2349.

The EUR/USD pair advanced to 1.2254, on the back of a better market mood. After a slow start to the week,  a busy calendar stimulated market players, with stocks rallying in Europe and the DAX hitting a record high. Wall Street opened firmly higher but eased from tops as yields surged on mounting US inflation concerns. The greenback recovered some ground ahead of the close, with EUR/USD ending the day at 1.2225.

Data-wise, Markit released the final versions of its EU May Manufacturing PMIs. The German index was upwardly revised to 64.4, while the final EU printed at 63.1, also beating the preliminary estimate. Germany’s Unemployment rate unexpectedly rose to 10.7% against the expected slide to 10.1%. For the whole Union, the unemployment rate contracted to 8%. In the US, the Markit Manufacturing PMI for the same month was upwardly revised to 62.1, while the official ISM index printed at 61.2, both beating expectations.

This Wednesday, the EU will publish April Producer Prices, while ECB’s President Christine Lagarde is scheduled to speak. Germany will release April Retail Sales, foreseen at -2% MoM. The US won’t publish first-tier data.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair presents a clear bullish potential. The 4-hour chart shows that it develops comfortably above its moving averages, which maintain their bullish slopes. Technical indicators remain within positive levels, the RSI consolidating around 57 and the Momentum heading firmly north. The pair still needs to surpass the 1.2270 resistance level to be able to advance toward the year high 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.