Current trend

The EUR/USD pair is showing flat dynamics, consolidating near 1.0735. Activity on the market remains quite low, since trading floors in the United States are closed due to the celebration of Juneteenth.

Macroeconomic statistics from eurozone, published the day before, did not provide significant support for the instrument. Thus, the German Economic Sentiment from the Center for European Economic Research (ZEW) in June adjusted from 47.1 points to 47.5 points with expectations at 50.0 points, and the Current Situation index dropped from –72.3 points to –73.8 points, contrary to forecasts of –65.0 points. In turn, the Consumer Price Index in the eurozone added 0.2% month-on-month and 2.6% year-on-year, while the Core CPI added 0.4% and 2.9%, respectively. Today, investors will pay attention to April data on Construction Output in the eurozone, as well as a Monthly Report from the German Bundesbank, which may contain forecasts regarding future monetary policy in the region.

Meanwhile, the US dollar strengthened slightly on the back of Industrial Production data: in May the figure increased by 0.9% after zero dynamics in April, while analysts expected 0.3%, and Retail Sales rose by 0.1% after –0.2% a month earlier with preliminary estimates of 0.2%.

Support and resistance

Bollinger Bands on the daily chart show a steady decline. The price range expands from below, making way for new local lows for the "bears". MACD indicator tries to reverse to growth and to form a new buy signal (the histogram is about to consolidate above the signal line). Stochastic shows more active growth, quickly retreating from its lows, indicating that the single currency is oversold in the ultra-short term.

Resistance levels: 1.0765, 1.0800, 1.0820, 1.0842.

Support levels: 1.0730, 1.0700, 1.0667, 1.0630.

Trading tips

Short positions may be opened after a breakdown of 1.0730 with the target at 1.0667. Stop-loss — 1.0765. Implementation time: 2-3 days.

The return of the "bullish" trend with the breakout of 1.0765 may become a signal for new purchases with the target of 1.0820. Stop-loss — 1.0730.