EURUSD Technical Outlook (Daily)

EURUSD Technical Outlook (Daily)



EURUSD: The week started with thin trading volumes, and with the Buck paring the upward momentum triggered by FOMC Mins.

The single currency traded modestly lower, briefly falling below the 1.1200  mark Vs the USD, and holding near the mark into the close.

Data coming from Europe was mixed, as the preliminary Markit PMI’s for the EU missed expectations. The manufacturing sector PMI shrank from 51.7 to 51.5, while the services sector grew by 53.1, matching April number, but below 53.3 as expected.

In the US the seasonally adjusted Markit Flash US Manufacturing Purchasing Managers’ Index (PMI) came in at 50.5, down from 50.8 in April.

The EURUSD maintains a Bearish bias, despite the lack of follow through, and is still contained in near term by selling interest in the 1.1240/50 zone, and it is trading below 1.1280, the resistance to overcome to confirm additional gains in the near term.

The 4 hours shows that the pair continues consolidating near the 2 month low set last Friday at 1.1179, the price is hanging around a very Bearish 20-Day SMA, the Momentum indicator aims higher around its mid-line, the RSI bounces from oversold readings, indicating limited selling interest around the pair.

A clear break below 1.1160, the Key support is required to confirm a Southward continuation for Tuesday.

Support marks: 1.1195 1.1160 1.1120
Resistance marks: 1.1245 1.1280 1.1330

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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