EURUSD Technical Outlook (Daily)
EURUSD: The Hawkish tone of the FOMC Mins kept the USD running Thursday, as investors were caught on the wrong side of the market when the Central Bank opened doors for a June rate hike.
The Buck strengthened sharply Vs most of its major peers, but corrected lower in the US afternoon, as poor US data put an end to USD’s gains.
Nevertheless, the EURUSD pair just managed to recover to current 1.1200 area after trading as low as 1.1179.
The ECB released the Mins of its April meeting and showed that the bank wants it to be absolutely clear that it is committed to revive inflation in the Eurozone, nothing that can actually shock the markets.
In the US, weekly unemployment claims in the week ending on 13 May came in at 278-K above expected, but below previous of 294-K.
The Philly Fed manufacturing index fell in May, down to 1.8 from previous 1.6, disappointing.
Messrs Dudley and Lacker from the Fed were on the wires reaffirming that a rate hike next June is possible.
The single currency maintains its negative tone ahead of Asian opening, having met selling interest on approaches to the 1.1240/50 area, now 1st resistance, as long as the mark holds, the EURUSD has room to extend its decliner down to 1.1160 Key support.
Technically, the 4 hours shows that the indicators have turned flat within oversold marks, as the 20-Day SMA maintains its Bearish slope above the current mark and below the 100 and 200-Day SMA’s, supporting the ongoing decline. A weekly close somewhere below 1.1120, should signal a continued Southside move towards the 1.1000 region for the coming week.
Support marks: 1.1160 1.1120 1.1080
Resistance marks: 1.1245 1.1280 1.1330
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