EUR/USD to stretch until 1.1350 on a break above 1.1310

The EUR/USD pair is up this Monday, nearing the 1.1300 level, and could extend its advance to 1.1350 after German inflation beat estimates in June, FXStreet’s Chief Analyst Valeria Bednarik reports.

Key quotes

“German inflation beat estimates according to June preliminary estimates, recovering from 0.5% to 0.8% YoY. However, the EU Economic Sentiment Indicator for the same month printed at 75.7 from 80 in the previous month. The US, on the other hand, will publish later today May Pending Home Sales, expected to have fallen by 44.6% in the month, and the Dallas ed Manufacturing Business Index for the same month, seen at -59 from -49.2.”

“In the 4-hour chart, EUR/USD is battling with a horizontal 100 SMA, although above the 20 and 200 SMA. Technical indicators, in the meantime, are advancing within positive levels, indicating increasing buying interest.” 

“The pair could accelerate its advance on a break above 1.1310, the immediate resistance, although gains beyond 1.1350 seem unlikely amid ongoing uncertainty and first-tier data scheduled for later this week.”