EUR/USD hits daily highs above 1.0550

• Day of calm and limited tours in foreign exchange.
• EUR/USD advances supported by the weakness of the dollar.
• Equity markets rise again.

The EUR/USD is moving calmly and in an uptrend on Friday, on a day of limited rallies at the moment. The pair recently climbed to 1.0554, marking a new daily high.

The weakness of the dollar explains the rise of the EUR/USD. The greenback fell modestly in the market due to an easing in expectations of a monetary adjustment by the Federal Reserve and due to the advance in the equity markets.

In the Eurozone, the German IFO survey was released, showing figures below expectations. The business climate index fell to 92.3, below the 92.9 expected. The expectations went to 85.8 below the 87.4 of the market consensus.

The economic calendar shows US data for Friday that includes the University of Michigan Consumer Confidence Index for June (it is the final reading, expected to be unchanged from the preliminary 50.2) and the report of new home sales (expected to decrease from the annual rate of 591,000 to 587,000). Also speaking in public are St. Louis Fed President James Bullard and San Francisco Fed President Mary Daly.

short-term outlook

EUR/USD continues to move sideways in the short term, with a slight bullish bias. To the upside, first resistance looms at 1.0565 followed by 1.0580 (23 Jun high). The key area is 1.0600/10 which, if broken, would enable more upside and put an end to sideways moves.

To the downside the daily low area at 1.0510 is the first support followed by 1.0495 where a very short term bull line is passing. Losing that support could expect a drop to the key 1.0450/60 area, which contained the lows in recent days. Below the bearish tone would intensify.

Technical levels