EUR/USD is on a decline as a reaction to the mixed economic data from Europe. On the one hand, Germany’s ZEW economic sentiment came in lower-than-expected at 63.3. Analysts had expected a reading of 75.2 compared to the prior month’s 79.8. However, with regards to the country’s current conditions, the released figure of 21.9 is better than the prior month’s -9.1.
At the broader Eurozone, retail sales rose by 4.6% in May MoM after declining by 3.9% in the previous month. However, its economic sentiment for July came in at 61.2, which is lower than the prior 81.3.
Later in today’s session, EUR/USD will be reacting to the US ISM non-manufacturing PMI. Besides, investors are keen on the FOMC meeting minutes scheduled for Wednesday. In its last meeting, Fed’s hawkish surprise boosted the US dollar. The minutes will avail further cues on the direction of the bank’s monetary policy. Currently, the Fed has maintained an accommodative policy with the intent of boosting the ongoing economic recovery. Notably, inflation concerns remain palpable.
EUR/USD technical outlook
EUR/USD has erased its previous gains as a reaction to the lower-than-expected economic data from Germany. At the time of writing, it was down by 0.23% at 1.1836. It has dropped by 0.50% from an intraday high of 1.1895. On a two-hour chart, it is trading below the 25 and 50-day exponential moving averages.
EUR/USD is likely to remain under pressure ahead of the FOMC meeting minutes. A move below its current support level of 1.1838 will have the bears eyeing last week’s low of 1.1810. On the flip side, it may rebound to find resistance along the 50-day EMA at 1.1868. A move past that point will place the next resistance levels at Tuesday’s high of 1.1895 or higher at 1.1908.