EURUSD Technical Outlook (Daily)

EURUSD Technical Outlook (Daily)



EURUSD: Safe havens eased, giving high yielding currencies a bounce Tuesday.

The matter is hanging like the Sword of Damocles’ above the financial world. Asian shares closed mixed, European shares opened sharply higher and held on to sharp gains throughout the day.

On the macro-economic front

Germany released import and export prices indexes, with the 1st falling by by 5.5% in May compared to a year ago. Compared to April, the index advanced 0.9% also above expectations.

Export prices decreased by 1.6% in their annual comparison, and advanced by 0.2% from the prior month.

In the US, the final revision of Q-1 GDP showed that the annual rate of growth was of 1.1%, below Q-4 of  Y 2015’s 1.4%.

US Consumer Confidence, rose to 98.0 Vs expectations of an advance up to 93.3.

But, always remember that the market is all about sentiment and little about data.

The EU Prime Ministers met in Brussels, but there was no official statement on the matter, and news only focused in the verbal battle between Junker, and Nigel Farage, the leader of the United Kingdom Independence Party who backed the Brexit.

Technically, the EURUSD maintains a negative bias, as the intra-day recovery stalled right around the 38.2% Fibo retracement of its daily advance.

In the 4 hours, a sharply Bearish 20Day SMA, capped intra-day advances, and stands at 1.1080, providing an immediate near term resistance.

The Momentum indicator in the same frame, has reentered negative territory after correcting overbought readings, and the RSI indicator consolidates around 42, maintaining the risk towards the Southside, particularly on a break below 1.1020, the 23.6% Fibo retracement of the decline, and the immediate support, with the chance to test the 1.0910/30 region.

Support marks: 1.1020 1.0970 1.0930
Resistance marks: 1.1120 1.1160 1.1200

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 :