EURUSD Technical Outlook (Daily)
EURUSD: The USD started the day broadly lower across the board, then regaining some ground, to finish mixed on the day.
The single currency reached a weekly high at 1.1213 early in the London session, and retreated with the release of EU PPI data for April, showing that industrial producer prices fell by 0.3%, leaving the Y-Y reading at 4.4%.
Then, the ECB announced, and left its economic policy unchanged. President Draghi statement include references to the implementation of its corporate bond buying and TLTRO II programs, and did the slightest revisions possible to growth and inflation for this year, with inflation now expected to be 0.2% Vs the prior 0.1% for Y 2016.
Overall, it was more Dovish than expected.
In the US, attention was focused on minor employment figures, with the ADP private survey showing that the economy created 173,000 new jobs in May, slightly below analysts expectations and weekly unemployment claims came in at 267-K for the week ended May 27, beating expectations of 270-K.
That news drove the Buck up ahead of Friday’s NFPs (Nonfarm Payrolls) report, expected to show that the US added 164-K new jobs in May, while the unemployment rate is expected to have edged down to 4.9%.
The EURUSD technical stance is Bearish, and will remain Bearish unless the price recovers beyond 1.1230, the Key resistance as in the daily the 20-Day MA and the 100-Day MA converge there.
In the 4 hours, the price is struggling at the horizontal 20-Day SMA, as the technical indicators head South around their mid-lines, indicating that the ears are in control. Should the decline extend beyond 1.1120, the risk turns South towards a test of 1.1000/40 Friday, on a strong US employment report, if that occurs.
Support marks:1.1120 1.1085 1.1040
Resistance marks: 1.1200 1.1235 1.1280
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