EUR/USD: Fibonacci support at 1.1170 holds the downside, bullish potential above 1.1270

EUR/USD briefly pierced the 38.2% retracement of its latest daily slump at 1.1170 and is now recovering from the level, a sign of limited selling interest. Valeria Bednarik, a Chief Analyst at FXStreet, expects the pair to regain the upside once above 1.1270.

Key quotes

“In the 4-hour chart, EUR/USD is unable to advance beyond a mild-bearish 20 SMA, which has crossed below the 100 SMA. Technical indicators, in the meantime, have retreated within negative levels, also indicating absent buying interest at the time being.” 

“To recover its bullish potential, the pair would need to advance beyond the 1.1270 level, the 23.6% retracement of the mentioned rally.”

“The US will publish May Existing Home Sales, seen down by 3.0% when compared to the previous month, while the EU will unveil the preliminary estimate of June Consumer Confidence, expected at -15 from -18.8 in the previous month.”