EURUSD Technical Outlook (Daily)
EURUSD: Markets were rollercoaster’ing Thursday, as adding to 4 Central Banks´ decisions in less than 24 hours, there were rumors pointing to a suspension of the Brexit referendum, after British Parliamentarian Jo Cox was shot dead in the street.
PM David Cameron suspended the campaign activity for next week’s referendum on the country’s EU membership.
The USD began to advance at the beginning of the London session, as after the US Fed and BOJ’s inaction, investors’ attention flipped back to Brexit concerns.
The Buck accelerated its advance when the Bank of England (BOE) decided to maintain its economic policy unchanged, and warned once again over the risk of a Brexit for the UK.
Despite the US release some mixed macro-economic data, high yielding currencies sunk, with the EURUSD moving down to 1.1130, its lowest mark on the month.
The single currency trimmed almost all of its daily losses after Brexit fears receded with the shooting, on speculation this will end up favoring the “remain” campaign, as the victim was proEU.
The technical outlook is interesting a EURUSD tested and bounced back from the daily ascendant trend line coming from November 2015 that also triggered a strong bounce once approached late May.
In the 4 hours, the upward potential is seen as limited, in that the technical indicators have bounced sharply from oversold territory, but are not yet confirming and extension beyond their mid-lines, as the latest recovery stalled right below a Bearish 20-Day SMA.
EURUSD needs to settle above 1.1245 to attempt a retest of 1.1290/1.1300, and it will take a recovery beyond that to confirm a Bullish continuation for this Friday.
Support marks: 1.1200 1.1160 1.1120
Resistance marks: 1.1245 1.1295 1.1340
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