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Bulls see EUR/USD approaching 1.2245 for the third time and see a break higher as imminent. Bears see the latest attempt as yet another failure. What is next for the currency pair? Upbeat eurozone PMIs support the euro and US data is key for the next moves, Yohay Elam, an Analyst at FXStreet, briefs.

The trend remains to the upside

“Markit’s preliminary Purchasing Managers’ Indexes for May showed a significant improvement in the services sector. Europe’s reopening is boosting business sentiment. Falls in COVID-19 infections and an acceleration of the old continent’s vaccination effort are behind the move. The European Central Bank’s Consumer Confidence measure may help as well.”

“The key to the next move is in the US. Markit’s PMIs are set to show strength in the economy, but an uptick in inflation figures could support the dollar. San Francisco Fed President Mary Daly is scheduled to speak. She tends to be dovish, so perhaps her words would provide the necessary boost to bring EUR/USD over the line.”

“1.2245 is the critical level to watch. Apart from the two recent attempts, it held EUR/USD down in February. Further above, 1.2280 and 1.2350 await the pair.”  

“Some support is at 1.22, followed by 1.2180 and 1.2150.”

 

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