EUR/USD: Selling Interest Strong, 1.1080 Still Possible
EUR/USD Current Price: 1.1148
The American dollar was under limited selling pressure this Tuesday,
after markets came back from a long weekend that keep UK and US banking
sectors closed, mostly due to some profit taking at this last day of
May. The EUR/USD pair advanced up to 1.1164, underpinned by strong
German data released earlier today, showing that the unemployment rate
fell to 6.1% against previous 6.2%, while Retail Sales for April surged
by 2.3%, against the 1.9% advance forecast. The US regained some ground
after the release of Personal Income and Spending data, as income rose
by 0.4% as expected, but spending soared to 1.0% in April.
The EUR/USD pair remains within positive territory daily basis, but the risk has turned towards the downside in the short term, as in the 1 hour chart, the price failed to hold above the 100 SMA, whilst the technical indicators have turned sharply lower within bullish territory. In the 4 hours chart, the price was unable to advance beyond a mild bearish 20 SMA, whilst the technical indicators keep consolidating right below their mid-lines, with little directional strength.
Support levels: 1.1120 1.1080 1.1040
Resistance levels: 1.1160 1.1200 1.1245
