The EUR/USD pair advances slightly at the weekly opening in the absence of relevant economic data and showing limited reaction to the statements of several members of the European Central Bank Governing Council, including president Christine Lagarde.
At the time of writing, EUR/USD is trading around 1.0515-20, 0.2% above its opening price, having hit an intraday high of 1.0545 during the European session.
In her statement before the European Parliament, Lagarde said the bank plans to raise the policy rate by 25 points next month, while she also left the door open for another hike in September.
Furthermore, Lagarde declined to comment on any details of the ECB's new bond-buying tool while stressing that fighting fragmentation is a precondition for the success of the monetary policy. She also said conditions are in place for further economic growth in the region.
Meanwhile, in the United States, the stock and bond markets remain closed this Monday in observance of the Juneteenth holiday.
The dollar, measured by the DXY index, trades lower which, coupled with a new advance in 10-year German Bund yields, has favored the European currency's gains.
Looking ahead, Fed Chairman Jerome Powell's testimonies to Congress on Wednesday and Thursday will be key events of the week.
From a technical point of view, the EUR/USD pair maintains a neutral bias in the short term, although the long-term outlook remains bearish.
The daily RSI shows a positive slope, still below its midline, while the MACD prints decreasing red bars, which could signal a continuation of the upward correction in the coming days.
On the upside, the 20-day moving average offers immediate resistance at the 1.0620 area, followed by the psychological level of 1.0700, which is reinforced by a downtrend line drawn from the February highs, and then the 1.0770 zone.
On the other side, immediate support is seen at the 1.0450 area, followed by the 1.0400 psychological level. A break below this latter would pave the way to retest the cycle low of 1.0349. Then, the next support could be found around 1.0300.
At the time of writing, EUR/USD is trading around 1.0515-20, 0.2% above its opening price, having hit an intraday high of 1.0545 during the European session.
In her statement before the European Parliament, Lagarde said the bank plans to raise the policy rate by 25 points next month, while she also left the door open for another hike in September.
Furthermore, Lagarde declined to comment on any details of the ECB's new bond-buying tool while stressing that fighting fragmentation is a precondition for the success of the monetary policy. She also said conditions are in place for further economic growth in the region.
Meanwhile, in the United States, the stock and bond markets remain closed this Monday in observance of the Juneteenth holiday.
The dollar, measured by the DXY index, trades lower which, coupled with a new advance in 10-year German Bund yields, has favored the European currency's gains.
Looking ahead, Fed Chairman Jerome Powell's testimonies to Congress on Wednesday and Thursday will be key events of the week.
From a technical point of view, the EUR/USD pair maintains a neutral bias in the short term, although the long-term outlook remains bearish.
The daily RSI shows a positive slope, still below its midline, while the MACD prints decreasing red bars, which could signal a continuation of the upward correction in the coming days.
On the upside, the 20-day moving average offers immediate resistance at the 1.0620 area, followed by the psychological level of 1.0700, which is reinforced by a downtrend line drawn from the February highs, and then the 1.0770 zone.
On the other side, immediate support is seen at the 1.0450 area, followed by the 1.0400 psychological level. A break below this latter would pave the way to retest the cycle low of 1.0349. Then, the next support could be found around 1.0300.