EURUSD Technical Outlook (Daily)

EURUSD Technical Outlook (Daily)



EURUSD: The EURUSD was under selling pressure Monday, in spite of US data which was overall soft, as markets continued focusing in the UK post-referendum consequences.

The single currency fell sub 1.1000 early Europe, testing 1.0970 before bouncing to end the day in the 1.1030 region, in the Red on the day.

The EU released its monetary figures for May, showing that the annual growth rate of the broad monetary aggregate M3 increased to 4.9%, from 4.6% in April.

In the US, the Goods Trade Deficit widened to $60.6-B, worse than market’s expectations of $59.5-B.

The June Flash Markit Services PMI showed that growth in the sector remained subdued in June, printing 51.3, unchanged from May’s result.

The Markit Flash Composite PMI Output Index registered 51.2 in June, up fractionally from 50.9 in May.

As all high yielders, the single currency is being weighed by the economic and political future of the region, after the UK voted to leave the EU. And despite turmoil has partially ease, it would take a long time for the markets to settle.

The EURUSD stands now around the 23.6% Fibo retracement of the Friday’s slide, and has been unable to advance beyond the 50% of it on an initial attempt to recovery, exposed therefore to extend its slide down to a major long term support in the 1.0800/40 region.

In the 4 hours, the 20-Day SMA has extended its decline down to the mentioned 50% Fibo retracement, the technical indicators bounced modestly from oversold marks, but remain within negative territory, with no Northward momentum that suggests a recovery in the upcoming days.

Support marks: 1.1000 1.0960 1.0920
Resistance marks: 1.1045 1.1080 1.1120

Stay tuned…

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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.

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