EUR/USD comatose around 1.12, looking for next catalyst
The EUR/USD pair moved in a tight 40-pip range on Monday and has been moving sideways near the 1.12 handle in the last few hours, awaiting a fresh catalyst. As of writing, the pair is trading at 1.1205, up 0.09% on the day.
Ahead of Wednesday's CPI data from the United States and the important FOMC monetary policy decision, investors will look at tomorrow's ZEW Survey results for some short-term trading opportunities. The Economic Sentiment from Germany and the EU and the Current Situation surveys are all expected to show improvements in June. Better than expected readings could allow the euro to recover some of the losses it recorded against the USD on Thursday but could have a difficult time gathering a sustainable momentum.
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On the other hand, the US Dollar Index was able to float above the 97 handle on Monday, preventing the pair from rising on Monday.
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FXStreet analyst Valeria Bednarik argues that the technical picture for the pair is short term neutral-to-bearish as in the 4 hours chart, the pair was contained by selling interest around a congestion of moving averages, as the 20 and 100 SMAs converge in the 1.1220 region. She further adds that in the same chart, the Momentum indicator continues heading higher, but below its 100 level, while the RSI indicator turned south, now around 42 and anticipating some additional declines ahead, however, unless a break below 1.1080, the downward potential will remain limited.
According to the analyst, support levels are located at 1.1160, 1.1120 and 1.1080 while resistances could be seen at 1.1210, 1.1250 and 1.1300.
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