EUR/USD: Rally to be extended once beyond 1.1040

The EUR/USD pair trades near its recent monthly high at 1.1035, bullish, according to intraday technical readings after the US data came in mixed, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“The market ignored mixed European data, as the EU Economic Sentiment Indicator came in at 67.5 in May, missing the market’s expectation of 70.3. Consumer Confidence in the same period printed at -18.8 as expected. Germany released the preliminary estimate of May’s inflation, with the annual CPI at 0.5%, as expected, down from 0.8% in April.”

“Durable Goods Orders fell by a new record of 17.2%, although better than the -19% forecast. The economic contraction in the country was revised lower to -5.0% for the first quarter of the year, according to the second estimate of the GDP. Finally, 2.12 million people filed for unemployment support in the week ended May 22, worse than anticipated.”

“In the 4-hour chart, EUR/USD is developing well above a bullish 20 SMA, while technical indicators resumed their advances within positive levels, in line with another leg higher. The pair needs now to run through 1.1040 to be able to extend its advance.”