EURUSD Technical Outlook (Daily)
EURUSD: The US monthly NFP’s released last Friday, cast doubts over the possibility of a US rate hike this Summer, triggering a Buck selloff. The world’s largest economy added just 38,000 meaning no jobs, new jobs last May, and March, April saw Southside revisions of 59-K.
The unemployment rate fell to 4.7%, the lowest since Y 2007, real unemployment is about 20%, and wages posted a modest growth, with the average hourly earnings rising 0.2% monthly basis, and 2.5% compared to a year before.
The latest ISM Non-manufacturing PMI dropped to 52.9 in May from previous 55.7, below expectations and the lowest in 2 years.
US Fed’s Chairwoman Janet Yellen is scheduled to speak about the economic outlook and monetary policy at the World Affairs Council of Philadelphia’s luncheon Monday, but seems unlikely her wording could affect market’s negative sentiment towards the USD.
Overall, the macroeconomic calendar is light this week, with attention shifting towards June 15th Fed’s meeting.
The EURUSD recovered to 1.1355, where it closed the week, the 50% Fibo retracement of the May´s slide. The strong U-turn in sentiment now favors the Northtside, and so do technical readings, as in the daily, the price is well above the 20 and 100-Day SMA’s, currently around 1.1220. The technical indicators head sharply higher after recovering above their mid-lines.
In the near term, the 4 hours shows that the technical indicators pared their advances in extreme overbought territory, but give no signs of retreating, in here, suggesting the pair may consolidate before breaking North, with scope now to extend its rally up to 1.1460 a Key resistance mark.
Support marks:1.1330 1.1280 1.1240
Resistance marks: 1.1370 1.1415 1.1460
Have a terrific week
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