- US dollar mixed across the board, losses strength after US economic data.
- EUR/USD approaches last week’s highs, having difficulties above 1.2250.
The EUR/USD rose further during the American session and following US economic data and climbed to 1.2254 reaching the highest level since last Wednesday. The pair then pulled back under 1.2250 and it is hovering around 1.2240/45, up for the day but off highs.
Economic data came in better-than-expected in the US, not boosting the US dollar. The ISM Manufacturing Index rose to 61.2, surpassing expectations of 60.7. Previously the Markit PMI was revised higher from 61.5 to 62.2.
In Wall Street, the Dow Jones is off highs, up by 0.29% while the Nasdaq drops 0.40%. A decline in Treasuries is keeping the dollar supported. The 10-year yield reached 1.64%, the highest since May 20.
Short-term outlook
From a technical perspective, EUR/USD holds a bullish tone, with support at 1.2235 and then the 20-hour moving average at 1.2230. So a decline under 1.2230 could open the doors to a deeper correction. The next support is near at 1.2210/15 (daily low), followed by the relevant area of 1.2175.
The bullish momentum eased after being unable to hold above 1.2250. While above 1.2235, the euro could attempt to rise back above 1.2250. If it continues, the next level is 1.2267 (last week high).
Technical levels
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