EUR/USD Is Neutral In The Near-Term But Holding Near The 1.2200 Level

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EUR/USD Current Price: 1.2180

• European data was mixed, although the EU Q1 GDP was upwardly revised to -0.3% QoQ.
• US data beat expectations, with the April’s trade balance shrinking to $-68.9 billion.
• EUR/USD is neutral in the near-term but holding near the 1.2200 level.

The EUR/USD pair established around 1.2180 after a failed attempt to breach the 1.2200 resistance level. Generally speaking, trading was dull despite a busy macroeconomic calendar, as investors remain focused on upcoming US inflation data and the European Central Bank announcement on monetary policy.

Germany published April Industrial Production, which contracted by 1% MoM, missing expectations. The annual reading posted a whopping 26.4% increase. The country published its June ZEW Survey, which showed that the Economic Sentiment unexpectedly contracted to 79.8 from 84.4. For the EU, the sentiment index resulted at 81.3, better than the 77 expected, although below the previous 84.4.

The EU also published a revised version of the Q1 Gross Domestic Product, which resulted better than anticipated at -0.3% QoQ from -0.6% previously. The US published the April Goods Trade Balance, which printed at $-68.9 billion, much better than anticipated and contracting from the previous $-75 billion and Job Openings in April, which rose to 9.3 million, beating expectations.  On Wednesday, the macroeconomic calendar will remain light, as Germany will release the April Trade Balance, while the US will only publish minor figures.

EUR/USD Short-Term Technical Outlook

The EUR/USD pair has bottomed for the day at 1.2163, offering a neutral-to-bullish stance in the near-term. In the 4-hour chart, the pair is trading between ascending 100 and 200 SMA and above the 20 SMA, which has now turned flat. Technical indicators remain above their midlines, with the Momentum heading lower and the RSI flat at around 51, indicating absent speculative interest.

Support levels: 1.2160 1.2120 1.2070   

Resistance levels: 1.2200 1.2245 1.2280

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.