EURUSD Technical Outlook (Daily)

EURUSD Technical Outlook (Daily)

Euro

$EURUSD

EURUSD: After the market spent 3 days digesting the result of the UK referendum, BOE’s Governor Mark Carney woke up Brexit’s Demons by stating that “monetary policy easing will likely be required over the Summer.”

High yielder’s were generally firmer across the board, with the EURUSD advancing to 1.1154, and the GBPUSD looking to 1.3500, but things turned to worse in the mid-American afternoon session, as following Mr. Carney’s speech, news hit the wires reporting that the ECB is “concerned about shrinking pool of eligible debt” and is looking at looser QE rules as Brexit depletes asset rules.

There was no official statement on the matter, but it was enough to sent traders further into the Buck.

Data coming from Europe was mixed, with German Retail Sales up in real terms by 2.6% compared with the corresponding month of the previous year, below market’s expectations, although monthly basis it came in up 0.9%.

The unemployment rate in the Germany remained flat at 6.1% in June.

In the EU:the Eurostat estimates inflation will be 0.1% in June, moving away from negative territory.

In the US: weekly unemployment claims were modestly higher, up to 268-K in the week ending 24 June, and the Chicago PMI printed 56.8, above the 50.7 expected.

As for EURUSD it fell to 1.1023 to finally stabilize around 1.1050, pointing to resume its Bearish trend, at least in the near term, as in the 1 hour, the price now moved below its 20 and 100-Day SMA’s, and the technical indicators have accelerated their declines within negative territory.

In the 4 hours, the price has broken below its 20-Day SMA, and the technical indicators head sharply lower, within negative territory, supporting a continued decline for Friday, particularly on a break below 1.1020, the 1st support.

Support marks: 1.1020 1.0970 1.0925
Resistance marks: 1.1095 1.1130 1.1165

 

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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