EURUSD Technical Outlook (Daily)
EURUSD: The USD traded softer Vs its 10 currency peers Wednesday. As Brexit panic faded, stocks rose worldwide, and commodities gained on broad USD’s weakness. The Fx market has continued trading on sentiment, following the positive mood of Asian trading, and paying little attention to macro-economic data reports.
The EU summit was on Wednesday, with officials pushing the UK to activate the orderly exit mechanism soonest, but the UK is in no rush, as it has already shut the door and money is flowing in on the GBP’s correction to 31 year lows.
On the data front
Germany released its May inflation figures, still close to Zero, aka no growth. German headline inflation rose to 0.3% in June compared to a year before, and 0.1% compared to May.
The GFK Consumer confidence survey rose to 10.1 beating expectations of 9.8.
In the US, personal income rose by 0.2% in May, as personal spending rose by 0.4%. Housing data disappointed, with pending home sales down by 3.7% in May after advancing steadily for 3 months running.
The EURUSD reached tapped a weekly high at 1.1130, but was unable to finish above 1.1110, the 38.2% Fibo retracement of last Friday’s fall, unable to confirm additional gains for Thursday’s sessions.
In the 4 hours, the price has been consolidating above a now flat 20-Day SMA at 1.1055, 1st support, and the technical indicators lack directional strength within positive territory, limiting the Southside without signaling a possible Northside move.
The single currency’s has ability to extend its recovery up to the 1.1160/80 region, the 50% Fibo retracement of Friday’s decline and the post-Brexit highs, although further gains are unlikely near term.
Support marks: 1.1055 1.1020 1.0970
Resistance marks: 1.1130 1.1165 1.1200
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