EURUSD Technical Outlook (Daily)
EURUSD: After a quiet start of the day, the USD lost steam after Wall Street’s Wednesday opening, to close the day generally lower across the board.
The single currency remained under pressure, as the EURUSD’s intra-day recovery stalled at 1.1165.
On the data front
Germany released a couple of confidence indexes, with the IFO survey coming in much better-than-expected, as in May, business confidence increased to 107.7 from a previously revised 106.7, whilst expectations also rose up to 106.6 from previous 100.5.
The GFK Consumer confidence for June, resulted at 9.8, beating expectations of 9.7.
In the US, trade deficit widened less-than-expected, up to $57.5-B last month from a final reading of $57.1-B in March, and against the $60.1-B expected.
The Buck held on to gains after the release of this last, but the Flash Markit services PMI weighed on the USD, down to 51.2 in May from an upwardly revised 52.8.The
EURUSD recovered from a fresh 2 month low of 1.1128, but the upward potential remains limited, as in the 4 hours the technical indicators are just barely correcting oversold readings, as the 20-Day SMA keeps heading South above the current mark, now at 1.1285.
In the same chart, the 100-Day SMA has crossed below the 200-Day SMA in the 1.1320/40 region, reflecting the strength of the Bearish move. Key support comes in at 1.1120, and a break below it should signal a steady Bearish continuation towards 1.1040.
Support marks: 1.1120 1.1080 1.1040
Resistance marks: 1.1200 1.1245 1.1280
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