The Euro (EUR) inched lower against the US Dollar (USD) on Tuesday, decreasing the price of EURUSD to less than 1.1600 following some key economic releases. The technical bias remains bullish because of the higher high in the recent upside move.
EUR/USD Technical Analysis
As of this writing, the pair is being traded around 1.1573. A resistance can be noted around 1.2315, A horizontal resistance level ahead of 1.2456, a trendline resistance and then 1.2555, the major horizontal resistance area as demonstrated in the given below chart.
On the downside, a support can be noted near 1.1522, a key horizontal support ahead of 1.1700, the psychological number and then 1.1635, the high of December 1st, 2017 as demonstrated in the given above chart. The technical bias may turn bullish if it breaks the 1.2478 resistance level.
Italy Consumer Confidence
Italy’s consumer confidence weakened for the second straight month in May to the lowest level in nine months, survey data from the statistical office Istat showed Tuesday.
The consumer confidence index dropped to 113.7 in May from 116.9 in April.
Moreover, this was the lowest score since August last year, when it marked 111.3.
The negative evolution of the consumer confidence indicator reflected unfavorable dynamics of all components.
Data also showed that the composite business confidence index worsened to a 16-month low of 104.7 in May from 105.0 in the previous month.
Trade Idea
Considering the overall price behavior of the pair over last few weeks, buying the EURUSD around current levels can proved to be a good decision in short to medium term.