EURUSD Technical Outlook (Daily)
The Buck posted a strong comeback in the US afternoon after falling to new YTD lows Vs most of its peers.
Commodity related currencies (AUD, NZD, CAD) underperformed, with the Loonie falling with Crude Oil and the Aussie hit by a surprise rate cut announced by the RBA early.
China was behind market’s worries, as the latest manufacturing PMI fell for 14th month running, reviving concerns over a global economic slowdown.
EU stocks dove, closing the day in the Red, helping the single currency drive to a 8 month high of 1.1615 Vs the USD.
In the US there were no major economic announcements.
The EURUSD fell as low as 1.1500 before bouncing, to close the day flat.
The downward knee jerk move was corrective as seen in the 4 hours, the price remains far above a Bullish 20-Day SMA, currently in the 1.1460 area, the RSI indicator is resuming its advance after erasing extreme overbought conditions.
The 1st Support is now at 1.1420, so the single currency must break below the 1.1380/1.1420 zone to negate the Bullish trend.
The 1st Resistance comes at 1.1565, and an upward extension beyond it should favor a retest of the high, then to 1.1713, August 2015 monthly high.
Support marks:1.1500 1.1460 1.1420
Resistance marks: 1.1565 1.1615 1.1660
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