EUR/USD: Corrective decline to challenge support at 1.2165

EUR/USD seems unable to extend gains beyond the 1.2200 figure. A corrective decline is imminent, in the view of FXStreet’s Chief Analyst Valeria Bednarik.

See – EUR/USD: Recent shifts in ECB and Fed rhetoric are bearish for the euro – MUFG

US macroeconomic data was mixed, but overall signaling economic growth

“April Durable Goods Orders contracted 1.3% MoM, missing expectations, although the core reading surged to 2.3%, much better than anticipated. Q1 Gross Domestic Product was upwardly revised to 4.3% QoQ while Initial Jobless Claims for the week ended May 21 contracted to 406K. The most notable reaction is that Wall Street is sharply up ahead of the opening, anticipating some risk-on trading for the American session.”

“The EUR/USD pair would need to extend gains above 1.2230 to regain its bullish potential, while bears could take over on a break below 1.2165.”

“Overall, and given the lack of follow-through, the pair seems poised to extend its corrective decline.”