At this time, the EUR/USD pair is moving back and forth in a narrow range of 40 pips, trading without a clear direction in the absence of relevant fundamentals data, while irregular volatility, coupled with closed US markets, At the mercy of the USD dynamics.
EUR / USD: Back to test the DMA of 10 in 1.1330?
After several unsuccessful attempts to overcome resistance near the 1.1375 region, the EUR/USD is returning to daily lows reached at 1.1336, while the US dollar expands its recovery mode across the board with the optimism driven by the manufacturing data.
As a result, the divergence of monetary policy between the two continents is again on the table, in the rise of bets by a Fed rate hike.
However, losses remain limited as the euro continues receiving some support from the prevailing risk sentiment in the markets as a result of greater caution after North Korea today launched an intercontinental ballistic missile.
In the meantime, the markets ignored negative Eurozone PPI data, which reached -0.4% m / m in May against expectations of -0.2%.
Technical levels for the EUR/USD
According to Slobodan Drvenica of Windsor Brokers Ltd: "Slow stochastic reversed from overbought territory and shows enough room for deeper correction. Pivot bracket at 1.1320 (Fibo 38.2% from 1.1118 / 1.1445) is under pressure and rupture Here it would generate a stronger bearish signal.The spread to the next pivot point at 1.1243 (SMA of 20 / Fibo 61.8%) is seen in the break below 1.1320 / 00. The highs at 1.1445 now mark strong offers. Today closed for Independence Day and a quiet day of operations is expected."
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