EURUSD Technical Outlook (Daily)
EURUSD: The USD recovered a good portion of the ground lost after the release of poor NFPs (Nonfarm Payrolls) data in spite of chances of a Fed interest rate hike remaining low.
The US FOMC has its economic policy meeting Tuesday and Wednesday, and the decision will be unveiled on Wednesday afternoon at 2:00p EDT.
The Buck’s gains at the end of last week was underpinned by a raid of risk aversion, spurred by weak Chinese data, which revived fears over a global economic slowdown.
Driving the USD at the end of the week was the US University of Michigan Consumer Sentiment Index (MSI) that come in at 94.3 in June, slightly below the 94.7 prior, but above the 94.0 consensus.
The macro-economic calendar will be extremely light Monday in Europe and the US, although the week will open with economic data coming from China, which will likely define market’s sentiment until the Fed.
From a technical point of view, the EURUSD pair’s latest decline could have also been fueled by profit taking ahead of the major events including Central Banks and the Brexit referendum, but whatever the reason behind the Fibo retracement a Bearish continuation is not yet confirmed, given that in the daily, the price is above the 20-Day SMA and 100-Day SMA’s, which converge around 1.1220/30, the immediate support, and the technical indicators have turned South, but are unable to confirm a Southward breakout.
In the 4 hours, the pair presents a clearer Bearish momentum with indicators heading South near oversold, and the 20-Day SMA turning South at 1.1340.
Support marks:1.1225 1.1190 1.1160
Resistance marks: 1.1290 1.1340 1.1385
Have a terrific week
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