EUR/USD struggles to hold its ground and trades in the red below 1.2700. The US Dollar gathers strength following hawkish comments from Fed Governor Michelle Bowman and the consumer sentiment data for June, forcing the pair to stretch lower.
The EUR/USD pair is confined to a 100-pip range for a second consecutive week, with the risk increasingly leaning to the downside. The pair barely holds above the 1.0710 support, while the daily chart shows it is developing below all its moving averages. Furthermore, the 20 Simple Moving Average (SMA) maintains its bearish slope, crossing below directionless and converging 100 and 200 SMAs. At the same time, technical indicators resumed their slides within negative levels, although the bearish strength remains limited.
The 4-hour chart shows near-term sellers are gaining confidence. EUR/USD is currently pressuring from above a bearish 20 SMA, while the longer ones gain downward traction far above the current level. Finally, technical indicators turned firmly south, with the Relative Strength Index (RSI) indicator currently at 46, in line with another leg south. The base of the range is at the 1.0660 price zone, the next relevant support area, and a potential bearish target should demand for the USD persist.
Support levels: 1.0710 1.0665 1.0620
Resistance levels: 1.0760 1.0810 1.0840
