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EUR/USD consolidates above 1.3350

FXStreet (Córdoba) - The EUR/USD is about to finish the session trading barely below 1.3370. During the day fell to test monthly lows on the back of weak economic data from Germany, but rebounded before reaching 1.3330. On American hours recovered ground, as the US dollar weakened across the board and rose to 1.3368.

Despite the recovery the EUR/USD is headed toward the second daily decline in a row, extending the retreated after hitting 1.3431 last Friday.

EUR/USD technical outlook

“Short term, the technical picture is showing price advancing at it session highs above a bearish 20 SMA, while indicators approach their midlines, still below them which means upward momentum is not enough to confirm a bullish continuation”, says Valeria Bednarik, Chief Analyst at FXStreet.

The 4-hour chart shows technical readings maintain the negative tone notes Bednarik, “with momentum heading south below its midline and price capped by 20 SMA now around 1.3370”.

EUR/USD technically bearish - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the dollar edged lower against most rivals in a livelier trading journey, still limited by the typical summer drop in volume.
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