The single currency extends the optimism in the first half of the week and lifts EUR/USD back to the 1.2150 region on turnaround Tuesday. EUR/USD so far advances for the second session in a row on Tuesday, although the bullish move appears to have met solid resistance in the mid-1.2100s for the time being. In the meantime, the consolidative mood is expected to remain in place in the markets ahead of the FOMC event on Wednesday, where the US inflation and economic prospects are predicted to take centre stage. In Europe, in the meantime, optimism on the economic recovery and the gradual return to the normal life post-pandemic continue to drive the sentiment among market participants, despite yields of the German 10-year reference remain depressed around -0.26%. In the domestic docket, the German final CPI rose 0.5% MoM and 2.5% YoY in May, while the trade surplus in the region shrank to €10.9 billion in April.
EUR/USD manages to bounce of recent lows in the sub-1.2100 area, although it is forecast to remain somewhat vigilant ahead of the Fed event later this week and while market participants keep digesting the latest US inflation figures. In the meantime, support from the European currency comes in the form of auspicious results from fundamentals in the bloc coupled with higher morale, prospects of a strong rebound in the economic activity and the investors’ appetite for riskier assets. So far, spot is gaining 0.04% at 1.2124 and faces the next up barrier at 1.2266 (monthly high May 25) followed by 1.2300 (round level) and finally 1.2349 (2021 high Jan.6). On the downside, a breakdown of 1.2064 (23.6% Fibo retracement of the November-January rally) would target 1.2051 (weekly low May 13) en route to 1.1985 (monthly low May 5). 
Signals World Providing Trading Signals to the World
Signals for Mt4/Mt5 & Online Trading
Free TrialEUR/USD rebounds further from the 1.2090 region
- Details
- Category: Finance
The single currency extends the optimism in the first half of the week and lifts EUR/USD back to the 1.2150 region on turnaround Tuesday. EUR/USD so far advances for the second session in a row on Tuesday, although the bullish move appears to have met solid resistance in the mid-1.2100s for the time being. In the meantime, the consolidative mood is expected to remain in place in the markets ahead of the FOMC event on Wednesday, where the US inflation and economic prospects are predicted to take centre stage. In Europe, in the meantime, optimism on the economic recovery and the gradual return to the normal life post-pandemic continue to drive the sentiment among market participants, despite yields of the German 10-year reference remain depressed around -0.26%. In the domestic docket, the German final CPI rose 0.5% MoM and 2.5% YoY in May, while the trade surplus in the region shrank to €10.9 billion in April.
EUR/USD manages to bounce of recent lows in the sub-1.2100 area, although it is forecast to remain somewhat vigilant ahead of the Fed event later this week and while market participants keep digesting the latest US inflation figures. In the meantime, support from the European currency comes in the form of auspicious results from fundamentals in the bloc coupled with higher morale, prospects of a strong rebound in the economic activity and the investors’ appetite for riskier assets. So far, spot is gaining 0.04% at 1.2124 and faces the next up barrier at 1.2266 (monthly high May 25) followed by 1.2300 (round level) and finally 1.2349 (2021 high Jan.6). On the downside, a breakdown of 1.2064 (23.6% Fibo retracement of the November-January rally) would target 1.2051 (weekly low May 13) en route to 1.1985 (monthly low May 5).