- EUR/USD on a consolidation mode, near the 1.1700 zone on a low volatility day.
- EU responds to Trump: suspend tariffs in order to negotiate a trade deal.
The EUR/USD pair continues to move in a range around 1.1700. Since European hours it is moving between 1.1715 and 1.1690, near the same level it closed on Friday. Volatility remains limited.ç
The euro has been unable to benefit from a modest slide of the US dollar. While EUR/USD remained in a range, GBP/USD, AUD/USD and NZD/USD reached fresh highs. US economic data had no impact on the greenback. The Manufacturing PMI in July rose to 55.5 slightly above the 55.4 reading expected.
Regarding trade tensions, Bloomberg reported that the European Union seeks that US President Trump suspends tariffs in order to get a trade deal. Tomorrow Trump will meet with Jean-Claude Juncker, President of the European Commission.
EUR/USD Technical levels
The pair maintains the bullish bias in the very short-term with price holding on top of key moving averages in the four hours chart. If the price drops and holds below 1.1675 (20 and 55 MA) it would weaken the euro signaling a test of the weekly low at 1.1652. Below that area, the next support is seen at 1.1610.
To the upside, immediate resistance might lie at 1.1715 (Jul 24 high), followed by 1.1725/30 and then 1.1750 (Jul 23 high & uptrend line from Jun 12 high). A break above 1.1750 could clear the way to a rally to 1.1790.
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