EUR/USD consolidation below MA50
Today’s statement by the French Minister of Finance, Bruno Le Mair, is that the Economic Indicators in the Eurozone are very well oriented and optimistic. He still agrees and reaffirms the growth target of 5% for 2021.
The crisis is behind us, but we must remain vigilant. Those are some encouraging words, and the progress in the pace of vaccination in France also undoubtedly helps him. We will see how this translates to hard data in the coming months, and the summer period is a key time frame to focus on. Looking at the chart, we see that the EUR/USD pair has been consolidating below MA50 in the zone around 1.22000 for the last couple of days. And all of this is part of a larger consolidation of 1.21500-1.22500.
Prolonged consolidation around the lower level of this zone could lead to a descent down to 1.21000, seeking support on the moving averages MA200 and EMA200. The MACD indicator currently supports this consolidation, giving us still the current bearish signal. We need to break above the moving averages for the bullish signal first, and then we can expect to revisit the 1.22500 zones above.
Today’s news gives us the following economic data:
German consumer confidence improved in June. The expected consumer confidence index rose to -7.0 in June from a revised -8.6 in May. However, the reading was weaker than the economists’ forecast of -5.2. Rolf Burkle, a consumer expert, said that we are leaving behind the Third Wave more and more, and the number of infected people has been falling significantly for several weeks. We are also making great strides in vaccination. As a result, openings and deviations from strict locking are possible, Burkle added.
