EURUSD Technical Outlook (Daily)
EURUSD: Market’s sentiment continued improve last Friday, although uncertainty over the upcoming Brexit referendum has kept majors within familiar ranges.
The decision of several central banks (Fed, BOE, BOJ) to remain on hold last week, is partially influenced by this upcoming event that could crack the EU.
The EURUSD closed near the higher end of its weekly range, just off 1.1300, as the USD suffered from a Dovish Fed. Janet Yellen will testify before the Congress this week, but given that it will be before the Brexit vote in the UK, market moves may be short lived.
The macro-economic calendar will be interesting in here, what with the release of European PMIs, German’s ZEW survey and US Durable Goods, but do not beleive that investors will pay much attention to the world’s economic health until pass the UK vote
As for the technical picture of EURUSD, it has bounced from Key support, a long term ascendant trend line coming from 1.0505, November 2015 low, but has been unable to advance beyond the 38.2% Fibo retracement of the May’s slide at 1.1300.
The daily shows a Neutral stance, with technical indicators flat, and the price standing a few pips above 1.11245, Key support in where the 20 and 100-Day MA are currently converging.
In the 4 hours, EURUSD shows a slight upward tone, as the price is standing above a mildly Bullish 20-Day SMA, and the technical indicators hold inside Bullish territory, but with no directional strength.
Support marks: 1.1245 1.1190 1.1140
Resistance marks: 1.1295 1.1340 1.1385
Have a terrific week.
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