EUR/USD Current Price: 1.1341
The dollar recovered the ground lost these last few days against all of its European rivals, trading generally higher across the board, but against the Japanese yen, as risk aversion took over financial markets. The negative sentiment was triggered by negative inflation figures in China, which revived concerns over the economic slowdown. European equities opened sharply lower, and against the usual, the EUR/USD pair also plummeted down to 1.1329, a handful of pips above its previous weekly low. The macroeconomic calendar remains scarce, with Europe only releasing the latest German trade balance, which showed a surplus of €25.6 billion in April 2016, compared to a year earlier, when the surplus was of €21.8 billion.
The EUR/USD pair bounced modestly from the mentioned low, trading now below the 50% retracement of May's decline, and below the 20 and 100 SMAs in the hourly chart, where technical indicators have stalled their declines, but remain within bearish territory, maintaining the risk towards the downside. In the 4 hours chart, the technical indicators have tuned flat right around their mid-lines, whilst the price is below a horizontal 20 SMA, pointing also to further declines on a break below 1.1320, the immediate support.
Support levels: 1.1320 1.1280 1.1250
Resistance levels: 1.1355 1.1380 1.1420