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The EUR/USD closed at $1.2218 after placing a high of $1.2254 and a low of $1.2212. EUR/USD pair remained on the back foot on Tuesday amid the rising prices of the U.S. dollar. The U.S. Dollar Index measures the greenback value against the basket of six major currencies surgeon Tuesday and posted minor gains that lifted it towards 89.94 level and supported the greenback. The U.S. dollar was further supported by the hike in U.S. Treasury yields on Tuesday that closed at 1.61% after reaching the daily high at 1.63%. On Tuesday, the strength in the U.S. dollar added further pressure on the prices of the EUR/USD currency pair and dragged it downwards.
On the data front, at 12:15 GMT, the Spanish Manufacturing PMI remained flat with the expectations of 59.3. At 12:45 GMT, the Italian Manufacturing PMI also remained as expected 62.3. At 12:50 GMT, the French Final Manufacturing PMI came in as expected 59.4. At 12:55 GMT, German Final Manufacturing PMI surged to 64.4 against the forecasted 64.0 and supported Euro that caped further EUR/USD pair losses. The German Unemployment Change dropped to -15K against the projected -9K and supported the single currency Euro and limited the downward momentum in EUR/USD pair.
At 13:00 GMT, the Final Manufacturing PMI from the whole bloc also remained unchanged at 63.1. At 13:02 GMT, the Italian Monthly Unemployment Rate surged to 10.7% against the forecasted 10.1% and weighed on Euro that added further loss in EUR/USD. At 14:00 GMT, CPI Flash Estimate surged to 2.0% against the predicted 1.9% and supported Euro that capped EUR/USD pair losses. Core CPI Flash Estimate for the year remained flat with the expectations of 0.9%. The Unemployment Rate from the whole bloc dropped to 8.0% against the projected 8.1% and supported Euro and limited the downward momentum in EUR/USD pair.
From the U.S. side, at 18:45 GMT, Final Manufacturing PMI rose to 62.1 against the anticipated 61.5 and supported the U.S. dollar and added further pressure on EUR/USD pair. At 19:00 GMT, the ISM Manufacturing PMI surged to 61.2 against the predicted 60.8 and supported the U.S. dollar, which added further loss in the EUR/USD pair. The Construction Spending declined to 0.2% against the expected 0.5% and weighed the U.S. dollar that caped loss in EUR/USD pair. The ISM Manufacturing Prices rose to 88.0 against the predicted 88.9 and weighed the U.S. dollar and limited downside pressure on EUR/USD.
Meanwhile, On Tuesday, a digital COVID certificate system intended to ease travel within the EU became operational in seven countries. This showed a preview of what could become a standard for post-pandemic global mobility. The digital green certificate records whether people have been fully vaccinated against the coronavirus, recovered from the virus, or tested negative within 72 hours. Travelers can move freely if at least one of those three criteria is met. The European Commission, the bloc’s administrative branch, said that the system would be in use for all 27 EU countries as of July 1. This added strength in the single currency Euro and further caped loss in EUR/USD pair.
EURUSD Intraday Technical Levels
Support Resistance
1.2193 1.2243
1.2163 1.2263
1.2144 1.2293
Pivot Point: 1.2213
EUR/USD - Technical Outlook
The EUR/USD pair has begun trading with a bearish bias at the 1.2205 level after facing resistance at the 1.2263 level. On the 4 hour timeframe, the resistance level was extended by a double top pattern at 1.22653 level. The closing of the Doji candle below this is supporting bearish sentiment among investors. Therefore, the EUR/USD has taken a bearish reversal, and it’s gaining support at the 1.2205 level. Violation of this support level opens up additional room for selling until 1.2165 and 1.2133 support areas. On the 4-hourly timeframe, the EUR/USD is crossing below 20 and 50 periods exponential moving averages that are also adding into the bearish sentiment today. All the best!
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