- The euro among the best performing currencies on Monday.
- Inflation data is coming from Germany for May.
- EUR/USD accelerates to the upside, hits the 55-day moving average.
The EUR/USD extended the bullish run and climbed to 1.0780, the highest level since April 25. The pair remains in the high zone, with the moment in favor in the previous inflation data from Germany.
In minutes, the preliminary report on inflation in Germany will be known, which is expected to show a rise in the consumer price index of 0.5%, and that the annual rate goes from 7.4% to 7.6%. Previously, a better indices of consumer confidence in the Eurozone was known with respect to the preliminary reading.
In the US it is a holiday and Wall Street will not operate normally. The futures of the main US stock indices and the European stock exchanges, operate with gains. The better weather partially weakens the demand for the dollar. At the same time the euro looks stronger and is one of the best performing currencies on Monday.
technical landscape
“A new high for the month in EUR/USD now opens the door to a potential visit to the resistgum 3-month in the neighborhood of 1.0800. If it is overcome, the selling pressure is expected to decrease and enable a probable test of the weekly maximum at 1.0936 (April 21) prior to the psychological barrier of 1.1000”, explains Pablo Piovano, analyst at FXStreet.
In the opposite direction, 1.0740 now looms as a first support, which if broken could change the intraday outlook from bullish to neutral/bearish. The 20-hour moving average is also passing through this level. Below the next support is at 1.0695.
Technical levels
Source: Fx Street
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