EURUSD Technical Outlook (Daily)

EURUSD Technical Outlook (Daily)



EURUSD: The USD’s upward momentum continued easing Thursday, despite US data beat expectations, as commodities prices rose.

The EURUSD rose to 1.1216, but failed to hold gains above the 1.1200 mark, as in the longer run, the market is focused on the upcoming US rate hike.

Data coming from the US was generally positive, although not enough to convince the Fed, as behind the headlines there were some weak soft sub-components.

The macro-economic calendar was busy in the US, with the April’s Durable goods orders jumping to 3.4% from an upwardly revised 1.9% increase in March.

Non-defense capital goods orders excluding aircraft, however, fell 0.8% after an upwardly revised 0.1% drop the prior month.

Weekly unemployment claims for the week ending on 21 May came in at 268-K, a decrease of 10-K from previous week’s 278-K, yet the 4 wk moving MA surged to 278.5-K from previous 275.5-K.

Lastly, Pending Home sales for March surged for a 2nd month running, up by 1.4%.

Now trading around 1.1180, the EURUSD pair 4 hours shows that the price is barely above a still Bearish 20-Day SMA, and the 100-Day SMA has crossed below the 200-Day SMA far above the current mark.

In that chart, the RSI indicator is retreating from its 50 mark after failing to advance beyond it, while the RSI heads North, but below the 100 line, all of which suggests that the Northside is still limited.

Renewed selling pressure below the 1.1160 should see the EURUSD resuming its decline this Friday, with scope to extend its decline down to 1.1080.

Support marks: 1.1160 1.1120 1.1080
Resistance marks: 1.1200 1.1245 1.1280

Stay tuned…

The following two tabs change content below.

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.

You must be logged in to post comments :