EURUSD Technical Outlook (Daily)
EURUSD: The market resumed USD buying Tuesday, sending the single currency down to 1.1139 a mark last seen on 16 March.
The Buck began to advance during the Asian session, particularly Vs the commodity related currencies (NZD, CAD, AUD), which pared losses in Europe, as the strong momentum in stocks helped them recover some ground.
Overall higher, except Vs GBP, the USD is now poised to extend its rally, as the US Fed’s officers maintain the Hawkish tone in regards of a June rate hike.
In Germany, the release of the ZEW survey showed that economic sentiment dropped to 6.4 in May, from 11.2 in April, but that assessment of the current situation rebounded after 2 drops, and came in at 53.1 in May, from 47.7 in April.
The EU economic sentiment also fell, down to 16.8 in May from a previous 21.5.
Further supporting the Buck were US New home sales, up to their highest level in 8 years in March, as sales surged by 16.6% to a 619,000 annualized pace.
The EURUSD enters the Asian session with a strong Bearish tone in the 4 hours, with the price far below a Bearish 20-Day SMA, and the technical indicators still heading South, despite being in oversold marks.
A daily ascendant trend line coming from December low of 1.0505 converges in the daily with the 200-Day MA around 1.1080 a probable Bearish target for this Wednesday, and the level to break to confirm a retest of the 1.1000 psych. If somehow the single currency recovers strong selling interest is expected to come on in the 1.1245/1.1280 region.
Support marks: 1.1120 1.1080 1.1040
Resistance marks: 1.1160 1.1200 1.1245