Upward Trendline Supports
The EUR/USD closed at $1.2250 after placing a high of $1.2267 and a low of $1.2211. EUR/USD pair reached its highest since January 3 after the dollar came under heavy pressure and pushed the currency pair higher. The risk-on market sentiment also added extra support to the rising prices of the EUR/USD pair. The U.S. dollar slipped against its rival currencies on Tuesday, and the DXY fell by 0.25% to 89.5. The Federal Reserve officials tried to tame the reflation fears and put a bid on the riskier assets. This also exerted an extra burden on the U.S. dollar Index and dragged the greenback lower that added further gains in EUR/USD pair.
On the data front, at 11:00 GMT, the German Final GDP for the quarter dropped to -1.8% against the projected -1.7% and weighed on the single currency Euro that further capped gains in EUR/USD pair. At 13:00 GMT, the German Ifo Business Climate for May rose to 99.2 against the projected 98.2 and supported Euro and added extra gains in EUR/USD pair. At 18:00 GMT, the Belgian NBB Business Climate surged to 6.5 against the predicted 5.6, supported the single currency Euro, and pushed the EUR/USD pair higher.
From the U.S. side, at 18:00 GMT, The Housing Price Index surged to 1.4% against the estimated 1.1% and supported the U.S. dollar and caped further upward momentum in EUR/USD. The S&P/CS Composite-20 HPI for the year also rose to 13.3% against the anticipated 12.6% and supported the U.S. dollar. At 18:59 GMT, the Richmond Manufacturing Index dropped to 18 against the predicted 19, weighed on the U.S. dollar, and lifted EUR/USD. At 19:00 GMT, the CB Consumer Confidence in May declined to 117.2 against the estimated 119.0 and weighed on the U.S. dollar and added further EUR/USD pair gains. The New Home Sales fell to 863K against the projected 950K, weighed on the U.S. dollar, and pushed the EUR/USD pair higher.
The U.S. removal of China's Xiaomi from the government blacklist and a steady vaccination drive in the West favored the upbeat market sentiment. Another report suggested that the U.S. was ready to ease the Russian oil pipeline ban that favored the market mood and supported the rising prices of riskier assets like the EUR/USD pair.
The single currency Euro was strong across the board on Tuesday after the European Commission released a report suggesting that the European Union was expecting to receive more than a billion doses of coronavirus vaccines by the end of September from four drug-makers. The document showed that the EU was confident that it has enough vaccines to immunize its entire population by that date. EU expects to receive 413 million doses in the 2nd quarter and another 529 million in the 3rd quarter.
During the 1st quarter, the EU has received about 106 million doses of the coronavirus vaccine. By the end of the year, the EU forecasts that it will receive another 452 million doses to make 1.5 billion. This raised the chances of fast economic growth and recovery that added strength to the single currency Euro and pushed the EUR/USD pair higher.
EURUSD Intraday Technical Levels
Pivot Point: 1.2208
EUR/USD - Technical Outlook
The EUR/USD is trading at 1.2246 area, having tested the triple top resistance level of 1.2260. The pair has closed Tweezers top candles below 1.2269 level, suggesting odds of bearish correction in the EUR/USD pair. On the lower side, EMA's 20 and 50 periods support the direct currency pair around 1.2233 level. Breakout or a bearish crossover below these EMA can expose the EUR/USD towards 1.2197 and 1.2165. On the flip side, violation of 1.2260 resistance exposes the pair towards 1.2273 and 1.2309 resistance. All the best!
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