EURUSD Technical Overview:
Day Trading Range: 1.1570 - 1.1730.
Pivot: 1.1615
Key Resistance: 1.1655 - 1.1682 - 1.1732
Key Support: 1.1605 - 1.1565 - 1.1520
Technical Trade Idea
Most Likely Scenario: long positions above 1.1615 with targets at 1.1660 & 1.1675 in extension.
Alternative scenario: below 1.1615 look for further downside with 1.1595 & 1.1570 as targets.
Technical Indicators:
MACD: Indicator shows upside momentum.
Moving Avg: SMA100 (1.1560) & SMA200 (1.1583), strong support for today.
Fundamentals:
Falling Spread Between German and Italian Bonds Boost EURO in Broad Market
Besides the ongoing Italian budget noise, it’s pretty quiet going in terms of local drivers for the EUR and Investors seem to have put off chasing any ECB policy normalization story. However, there is little out there that supports the case for long euro, albeit there have been some less negative wires on the political front with respect to Italy and Brexit updates and there have not been any EM nor fresh trade headlines to sink the dollar’s peers so far this week. US Greenback lost some ground on recovering momentum in EURO & GBP however skittish emerging market currencies helped limit the greenback’s retreat.
The dollar may have pulled back from two-week highs but it is expected to stay well supported in the longer term, continuing to garner safe haven bids in the wake of weakness in emerging market currencies. On release front, today’s European calendar remains silent however macro data across key European markets were dovish yesterday while US Trade balance was well in line with expectations.
Today’s market hours will see release of ISM Non-Manufacturing PMI, Crude Oil Inventory and ADP Non-Farm employment change data and a hawkish outcome in same could help USD gain upper hand against the shared currency.
Thanks
YoCryptoManic
Day Trading Range: 1.1570 - 1.1730.
Pivot: 1.1615
Key Resistance: 1.1655 - 1.1682 - 1.1732
Key Support: 1.1605 - 1.1565 - 1.1520
Technical Trade Idea
Most Likely Scenario: long positions above 1.1615 with targets at 1.1660 & 1.1675 in extension.
Alternative scenario: below 1.1615 look for further downside with 1.1595 & 1.1570 as targets.
Technical Indicators:
MACD: Indicator shows upside momentum.
Moving Avg: SMA100 (1.1560) & SMA200 (1.1583), strong support for today.
Fundamentals:
Falling Spread Between German and Italian Bonds Boost EURO in Broad Market
Besides the ongoing Italian budget noise, it’s pretty quiet going in terms of local drivers for the EUR and Investors seem to have put off chasing any ECB policy normalization story. However, there is little out there that supports the case for long euro, albeit there have been some less negative wires on the political front with respect to Italy and Brexit updates and there have not been any EM nor fresh trade headlines to sink the dollar’s peers so far this week. US Greenback lost some ground on recovering momentum in EURO & GBP however skittish emerging market currencies helped limit the greenback’s retreat.
The dollar may have pulled back from two-week highs but it is expected to stay well supported in the longer term, continuing to garner safe haven bids in the wake of weakness in emerging market currencies. On release front, today’s European calendar remains silent however macro data across key European markets were dovish yesterday while US Trade balance was well in line with expectations.
Today’s market hours will see release of ISM Non-Manufacturing PMI, Crude Oil Inventory and ADP Non-Farm employment change data and a hawkish outcome in same could help USD gain upper hand against the shared currency.
Thanks
YoCryptoManic