EUR/USD clears the 1.1330 level to confirm a new leg higher

EUR/USD is bullish in the short-term as the pair is clearing the 1.1330 price zone and could accelerate the rally towards 1.1340, Valeria Bednarik, Chief Analyst at FXStreet, reports. 

Key quotes

“The market ignored worse than anticipated German Retail Sales, which plunged by 29.3% YoY in May. The EU sales in the same period, however, declined by 5.1% YoY, better than anticipated. The Union also released the July Sentix Investor Confidence, which came in at -18.2 vs. the -10.9 expected. Investors are waiting for the US ISM Non-Manufacturing PMI, foreseen in June at 50 from 45.4 in the previous month.”

“To confirm a new leg higher, EUR/USD would need to accelerate through the 1.1340 level, as it has met sellers in the 1.1330 price zone.”

“Technical readings in the 4-hour chart support an upcoming advance, as the pair is developing above all of its moving averages, with the 20 SMA crossing above the 100 SMA for the first time since mid-June. Technical indicators, in the meantime, head firmly higher within positive levels.”