- Spotted with a double top, resistance seems between 1.1270 and 1.1300.
- Trading range remains between 1.1160 and 1.1300.
- Extended euro longs.
- Room for downward correction over near term.
GfK predicts the consumer climate to reach 10.4 points in its forecast for June, which is 0.2 points higher than in May.
Given the lack of EUR macroeconomic data it is understandably a quiet day in the markets today. Things should pick up rapidly by tomorrow however as we have a number of high-impact U.S data releases to look forward to, starting with the U.S unemployment claims and U.S Prelim GDP QoQ basis.
U.S Prelim GDP QoQ basis
HSBC: We expect Q1 GDP growth to be revised up to 0.9% at an annualised rate, up from the initial release of 0.7%.
U.S April Durable goods orders
HSBC: We forecast that durable goods orders fell 1.6% in April and core durable goods orders rose 0.5%.
Deutsche Bank: Dollar selling was the dominant theme this week, as funds extended euro longs
The weaker US dollar and less euro area political risk offers decent support to the EUR. Focus is shifting to the central bank meetings in June.
Bulls strength sacked at 1.1270 rounded it’s 161.8 daily fe above this 1.1300 are the other potential resistance exists. Over near term, there is a room for downside correction as the daily RSI printing lower high.
On the downside potential support finds between 1.1180 and 1.1160 below this selling pressure accelerates for 1.1100/1.1075 and 1.1020 in the extreme case.
Also read: DXY TECHNICAL VIEW
It is important to always keep in mind the risks involved in trading with leveraged instruments.
What is your Technical View?
Do you have a different idea? Please leave us a comment and get an answer from our professional analysts.