Analysis EUR/USD - FXStreet
Majors are confined to tight ranges this Monday, with half Europe closed on Whit Monday and the macroeconomic calendar empty in the EU. Chinese data released over the weekend, with Retail Sales and Industrial Production for April missing expectations, triggered some risk aversion at the beginning of the day, but it was short lived. Asian shares edged higher, but Wall Street is poised for a soft opening. The color note is coming from commodities, sharply higher, with WTI futures at fresh year highs above $ 47.00 a barrel and spot gold advancing above $1,280.00 a troy ounce. The EUR/USD pair trades at the higher end of its daily range, flirting with 1.1330 ahead of the US opening. The US has just released its NY Empire State manufacturing index, which came in at -9.02 against market's expectations of 6.5.
The intraday technical picture reflects the ongoing lack of volume as the technical indicators are moving back and forth above their mid-lines, with no certain directional strength. The price however, is holding above a mild bullish 20 SMA around 1.1310, although a stronger support stands at 1.1280. The level to break to see the decline extending this Monday. In the 4 hours chart, the technical indicators have recovered from oversold levels, but have lost upward strength well below their midlines, whilst the 20 SMA has extended its decline below the 100 and 200 SMAs, all of them far above the current level, all of which maintains the longer term risk towards the downside.
Support levels: 1.1280 1.1240 1.1200
Resistance levels: 1.1340 1.1370 1.1410
