- The US dollar is mixed across the board, losing steam after US economic data.
- EUR / USD is approaching last week’s highs, struggling above 1.2250.
The EUR/USD rallied further during the US session to 1.2254 reaching the highest level since last Wednesday following the US data.Then, the pair fell back below 1.2250 and remains around 1.2240 / 45, bullish for the day, but outside the highs.
Economic data was better than expected in the US, and did not generate momentum in the US dollar. The ISM manufacturing index rose to 61.2, beating expectations of 60.7. Previously, the Markit PMI was revised up from 61.5 to 62.2.
On Wall Street, the Dow Jones moved away from highs, rising 0.29%, while the Nasdaq fell 0.40%. A drop in Treasuries keeps the dollar backed. The 10-year yield reached 1.64%, the highest level since May 20.
Short term outlook
From a technical perspective, the EUR / USD remains bullish, with support at 1.2235 and then the 20-hour moving average at 1.2230. So a drop below 1.2230 could open the doors for a deeper correction. The next support is near 1.2210 / 15 (daily low), followed by the relevant zone of 1.2175.
The bullish momentum waned after failing to stay above 1.2250. As long as it is above 1.2235, the euro could try to climb back above 1.2250. If it continues, the next level is 1.2267 (last week’s high).
Technical levels
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