EUR/USD needs a catalyst to retest the 1.1460 resistance zone

The EUR/USD pair trades at around 1.1430 after the initial test of the critical resistance area surrounding 1.1460 while European data released this Monday missed the market’s expectations, FXStreet’s Chief Analyst Valeria Bednarik briefs.

Key quotes

“Minor data coming from Europe has been ignored. Germany published the June Producer Price Index, which was down by 1.8% when compared to a year earlier, missing the market’s expectations. The EU released the May Current Account, which posted a seasonally adjusted surplus of €7.95 B, far below expected.”

“The 4-hour chart shows that the price develops above a firmly bullish 20 SMA, which remains well above the larger ones. Technical indicators, however, have eased within positive levels.”

“The risk remains skewed to the upside, yet the pair would need quite a strong catalyst to resume its advance and beat the 1.1460 resistance area.”