EUR/USD supported on negative tone around Fed's June meeting - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the EUR/USD pair traded uneventfully around its Friday's high for most of this Monday,

Key Quotes:

"But managed to extend its gains up to 1.1392 during the American session, following FED's Yellen words on a speech over current conditions and the outlook for the US economy in Philadelphia, in where she acknowledged the disappointing jobs´ report, but also reiterated that a rate hike is appropriate if the right conditions are met. Without saying much, Yellen tried to dismiss the relevance of one negative Payroll reading, although the market is not convinced now that the FED will be able to act this summer. 

Despite higher, the common currency has found little support in local data, as German Factory Orders fell by 2.0% in April compared to the previous month, far beyond the 0.6% decline expected. Compared to a year before, new orders fell by 0.5%. The EU Sentix Investor Confidence index, however, rose above expected, printing 9.9 for June, the highest for this 2016.  

The dollar saw a short-lived rally following Yellen's words, resulting in the EUR/USD pair falling down to 1.1325, level that continues attracting buying interest. Now above the 50% retracement of its May's slide, the pair is biased higher according to technical readings, as in the 4 hours chart, the 20 SMA heads sharply higher above the 100 SMA, whilst the technical indicators have resumed their advances, despite being in overbought territory. Adding to technical readings is the negative sentiment towards the greenback that will probably persist until the  upcoming FED meeting, next June 15th."