EUR/USD Rises to Session High, Still Stuck in Range Below 1.1400
As the US Dollar, measured by the US Dollar index, continues to lose ground on Wednesday, the EUR/USD pair rose to a session high level of 1.1388 before retracing few pips to currently trade at 1.1380.
Dismal US jobs date for May continues to weigh on the US Dollar as investors now seems to evaluate the timing of next Fed rate-hike decision. The US economic calendar has nothing to offer on Wednesday and hence, a major chunk of investors are likely to remain on the sidelines ahead of the much awaited FOMC meeting on June 14-15.
The only release from the US docket will be the official EIA weekly crude oil inventories report that could further boost risk-on sentiment that has been driving European equities and crude oil prices higher.
Valeria Bednarik, Chief Analyst at FXStreet notes, "as in the 4 hours chart, the Momentum indicator has finally erased the extreme readings achieved by the end of last week, and is now flat around its 100 level, whilst the RSI indicator consolidates near overbought readings, and the 20 SMA has approached the current level, maintaining a strong upward slope."
"The immediate resistance is 1.1395, this week high, followed by 1.1420 and the mentioned 1.1460, while below 1.1325, the pair can correct lower down to 1.1280, where selling interest should contain the slide."