EURUSD Technical Outlook (Daily)
EURUSD: the USD closed last week with gainers Vs most of its peers, getting a boost Friday from some better-than-expected economic data.
The improved technical tone of the Buck is not enough to confirm that the US currency will keep rallying, particularly due to the high levels of uncertainty surrounding the FX markets.
At the weekend, Chinese data pointed toward a slower growth in April, suggesting the economic slowdown of the world’s 2nd largest economy is far from over, and therefore suggesting markets will be dominated by risk aversion at the weekly opening.
Chinese Industrial Production rose by 6.0%in April, below the 6.8% marked in March and market’s expectations of 6.5%. Retail Sales in the same month rose by 10.1% yearly basis, missing expectations of a 10.6% advance.
The EURUSD fell for a 2nd straight week, dipping below the 1.1300 level before settling a few pips above it Friday.
The technical picture favors some additional declines in the single currency in the coming days, as in the daily, the price has broken below its 20-Day SMA, for the 1st time since late April, and the technical indicators are crossing into negative territory.
In the 4 hours, the price is now below its MA’s that converge in a tight range, the Momentum indicator heads South below the 100 line and the RSI indicator consolidates near oversold readings, also maintaining the risk towards the Southside.
Support marks: 1.1280 1.1240 1.1200
Resistance marks: 1.1340 1.1370 1.1410
Have a terrific week.
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