EUR/USD is trading on the defensive below 1.0950 on Monday. The pair is weighed down by the US Dollar recovery and risk aversion, as investors digest US-Sino headlines amid mounting Chinese growth fears. ECB-speak will be in focus. US markets are closed on account of Juneteenth.
The EUR/USD pair consolidates last week’s gains and retains its bullish potential. The daily chart shows it develops well above its moving averages, although the 20 Simple Moving Average (SMA) is losing its upward strength below a flat 100 SMA. At the same time, technical indicators have turned marginally lower but remain well above their midlines, reflecting the absence of solid selling interest.
In the near term, and according to the 4-hour chart, the risk is still skewed to the upside. The pair trades in the 1.0920 region, meeting buyers earlier in the day a handful of pips above a bullish 20 SMA, which heads firmly north above the longer ones. The Momentum indicator resumed its advance well into positive territory and after correcting extreme overbought conditions, while the Relative Strength Index (RSI) indicator corrects extreme readings, heading marginally lower at around 62.
