EUR/USD is expected to trade with a bullish outlook. The pair posted a rebound from 1.1635 (around the low of May 31), which should limit the downside potential. Both rising 20-period and 50-period moving averages are playing support roles. The relative strength index has just landed on its neutrality area at 50% and is turning up. To conclude, as long as 1.1635 holds on the downside, look for a further rise with targets at 1.1700 and 1.1730 in extension.
Fundamental Overview: The euro trades down 0.1% against the dollar at 1.1690 in early trade today, but stays well above the low this week of 1.1509. Italy's populist parties reached a deal to form a government, easing fears of new elections, which has helped stabilize the euro. here is further political uncertainty in Spain too, with Prime Minister Mariano Rajoy looking likely to be removed. This "won't help the current mood, though it expects the euro to stay above Tuesday's low.
Chart Explanation: The black line shows the pivot point. Currently, the price is above the pivot point which is a signal for long positions. If it remains below the pivot point, it will indicate short positions. The red lines show the support levels, while the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Resistance levels: 1.1700, 1.1730, and 1.1770
Support levels: 1.1615, 1.1590, and 1.1550