EUR/USD to suffer a corrective decline on a break below 1.2150

EUR/USD surged to 1.2176, its highest since February, and was last seen hovering around 1.2160. The pair is still bullish but a corrective decline is on the cards, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Immediate support at 1.2150

“The EU published May Sentix Investor Confidence, which surged to 21 from 13.1, largely surpassing the expected 14. The US calendar will be quite light, as the country will only publish the ISM-NY Business Conditions Index, foreseen at 29.5 from 37.2 previously.”

“The EUR/USD pair seems poised to extend its advance despite overbought conditions in the near-term.” 

“From a technical point of view, the pair retains its bullish stance, although a corrective decline is not out of the table.”

“The former high at 1.2149 is the immediate support level, with a break below it exposing the 1.2100/10 region.”