EUR/USD to break clear of the 20 hourly sma at 1.1224?

Currently, EUR/USD is trading at 1.1218, down 0.00% on the day, having posted a daily high at 1.1251 and low at 1.1194.

FOMC: future balance-sheet policy discussed - Nomura

EUR/USD's upside momentum fell shy of the yearly high of 1.1267 scored on the 23rd of this month when it topped out at 1.1249 on the Fed minute's bid. The price reverted back towards the 1.12 handle and dipped in for a test of a break below at 1.1192 today.  The price has since recovered to 1.1225 on the last hourly stick. With the Swiss, French and German markets closed in observance of Ascension Day overnight, thin markets allowed for some volatility.

• Eurozone: Sentiment turning towards a better performing economy - Westpac
• Germany's Spahn: ECB should ensure exit from extraordinary monetary policy does not occur too late

For the US session, the US Dollar Index has dominated the space once again and is driving the price. Spot EUR/USD was driven lower by the dollar after Initial Claims rose to 234K w/w, beating estimates and taking the 4-week average to 235.25K from 241.00K. We also had April’s Goods Trade deficit widening to $67.55 billion from March’s $65.05 billion. However, the DXY is giving back some of its gains and the euro is better bid on the houly sticks with eyes on a test and break of the 20 hourly sma at 1.1224.

EUR/USD levels

Shaun Osborne, Chief FX Strategists at UOB Group, noted the pair’s outlook stays neutral to bearish in the short term:

EUR/USD near term outlooks stays neutral/bearish – Scotiabank

Resistance levels: 1.1224, 1.1260 and 1.1295. Key supprt levels come as 1.1167 (low May 24) ahead of 1.1073 (76.4% Fibo of 1.1300-1.0339) with strong psychlogical support located at 1.1023 (20-day sma) on the wide.