EUR/USD

Financial markets stabilized further this Tuesday, with safe haven assets paring gains, at least temporarily. Asian shares traded mixed, but European equities opened sharply higher, with indexes up over 2% ahead of the US opening. The EUR/USD pair recovered modestly, up to 1.1079 a few pips below Monday's high during Asian hours, to later extend its advance up to 1.1111. Still trading in the green, news coming from Germany showed that the Import Price index, fell by 5.5% in May compared to a year before, better than the -5.8% expected. Compared to April, the index advanced 0.9% also above expectations. ECB's head, Mario Draghi, gave the introductory speech at the ECB's Forum on Central Banking, in Sinatra, Portugal, but made no particular statements on the EU ongoing monetary policy. However he urged major central banks to better coordinate their policies, to deal with the ongoing deflationary pressures most major economies suffer of. European Prime Ministers are gathered in Brussels, and are due to discuss several different issues, including the latest Brexit decision. In the US, the release of the final revision of Q1 GDP came in at 1.1%, better than expected, but unable to move the market much.

Ahead of Wall Street′s opening, the 1 hour chart, shows that the price is above a mild bullish 20 SMA, while the technical indicators hold flat within positive territory, keeping the downward risk limited. In the 4 hours chart, however, the price was rejected from the 38.2% retracement of the Friday's decline, whilst the 20 SMA also contained the advance, and even extended its slide below the mentioned Fibonacci level, whilst the technical indicators have turned lower, the Momentum within neutral territory, and the RSI near oversold readings, all of which favors some additional declines, particularly on a break below 1.1020, the immediate support.

Support levels: 1.1020 1.0970 1.0930

Resistance levels: 1.1120 1.1160 1.1200