Bank of America Global Research discusses EUR/USD technical outlook and highlights the importance of the 1.1165 level for near-term direction.
"The DXY and EUR/USD saw a narrow trading range in April and May. These ranges have broken with month end flows driving EUR/USD through the 200d SMA at 1.1012 and the DXY below 98.52. Such breaks suggest these trends can continue in the short term. However, the last day of May formed a hammer candle on the DXY chart. This has a bullish interpretation for the first week of June," BofA notes.
"Since the euro has yet to eclipse resistance from the March 30 high of 1.1165 plus the aforementioned bullish hammer for the DXY, it will be key for euro to break this resistance to see the trend accelerate higher in June. Resistances above that are 1.1280/1.1290, 1.1360 and 1.1450. DXY supports are at 97.83, 96.65 and 96.20," BofA notes.