EUR/USD Forecast: On hold amid markets’ holidays

EUR/USD Current Price: 1.2198

• The UK and the US markets will remain closed, resulting in low trading volumes.
• German’s inflation came in better than expected in May, up by 2.5% YoY.
• EUR/USD is technically neutral, consolidating around the 1.2200 level.

The EUR/USD pair trades uneventfully in a quiet start to the week, hovering around the 1.2200 figure. The daily low was set at 1.2182, while advances beyond the mentioned 1.2200 level fail to progress. Meanwhile, European stocks are under mild-pressure, following the lead of their Asian counterparts.

Market volumes are reduced amid holidays in the UK and the US and the absence of first-tier data. Germany published the preliminary estimate of May inflation figures, which were better than anticipated. The Consumer Price Index was up 2.5% YoY and 0.5% MoM. The EU published M3 Money Supply that contracted to 9.2% YoY in April, missing the market’s expectations. The US won’t publish macroeconomic figures today.

EUR/USD short-term technical outlook

The EUR/USD pair is neutral in the near-term. The 4-hour chart shows that it is hovering around a bearish 20 SMA, while technical indicators stand directionless around their midlines. The longer moving averages maintain their bullish slopes below the shorter one. The pair could gain bullish potential once above 1.2230, while bears could take over on a break below 1.2165. Both scenarios seem unlikely for Monday.

Support levels: 1.2165 1.2120 1.2070

Resistance levels: 1.2230 1.2280 1.2320

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