The EUR/USD pair is trading below the 23.6% retracement of its latest bullish run at 1.1270, gaining bearish strength as critical Fibonacci support emerges at 1.1170, FXStreet’s Chief Analyst Valeria Bednarik reports.
Key quotes
“The 4-hour chart shows that an intraday spike was rejected by a bearish 20 SMA, while technical indicators have turned south, maintaining their downward slopes within negative levels. The 100 SMA, on the other hand, keeps heading north at around 1.1210, providing an immediate dynamic support ahead of the 38.2% retracement of the mentioned rally at 1.1170.”
“European inflation in May met the market’s expectations with the annual CPI printing at 0.1% while the Construction Output fell by 14.6% in April, after shrinking by 15.7% in the previous month.”
“The shared currency was modestly weighed by comments from the ECB Vice President, who said that for countries with a weaker fiscal position like Spain, Italy, and Greece, it would be better if the European Union aid is distributed via grants rather than loans.”
“The US has just published Building Permits, which rose by 14.4% in May after falling by 21.4% in the previous month. Housing Starts in the same period rose by 4.3% up from -26.4% in the previous month.”
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