EURUSD Technical Outlook (Daily)

EURUSD Technical Outlook (Daily)



EURUSD: The currency pair traded uneventfully around its Friday’s high for most of Monday extending its gains up to 1.1392 during the American session, following US Fed’s Yellen hawkish words on a speech over current conditions and the outlook for the US economy in Philadelphia, in where she acknowledged the disappointing jobs´ report, but also reiterated that a rate hike is appropriate if the right conditions are met.

Without saying much, Ms. Yellen tried to dismiss the relevance of one negative NFPs reading, although the market is not convinced now that the Fed will be able to act this Summer.

Despite higher, the single currency has found little support in local data, as German Factory Orders fell by 2.0% in April compared to the previous month, far beyond the 0.6% decline expected.

Compared to a year before, new orders fell by 0.5%. The EU Sentix Investor Confidence index, however, rose above expected, printing 9.9 for June, the highest in Y 2016.

The USD saw a short lived rally following Ms. Yellen’s remarks, resulting in the EURUSD falling to 1.1325, a mark hat continues attracting buying interest.

Now above the 50% Fibo retracement of its May’s slide, the pair is biased higher according to technical readings, as in the 4 hours, the 20-Day SMA heads sharply higher above the 100-Day SMA, while the technical indicators have resumed their advances, despite it being in overbought territory.

Adding to technical readings is the negative sentiment towards the Buck that will probably persist until the upcoming Fed meeting, next June 15th.

Support marks:1.1330 1.1280 1.1240
Resistance marks: 1.1415 1.1460 1.1500

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 :