EUR/USD
Market’s sentiment improved this Wednesday, helped by an uptick in China’s economic activity, which cooled off the selloff in Asian share markets. The Chinese Caixin nonmanufacturing PMI printed 52.2 in March, above the 51.2 from February, bringing the composite PMI to 51.3 from 49.4 in February, indicating that the continued PBoC easing is finally offering some results. The American dollar managed to advance some against the common currency, but once again, investors chose to sell the greenback at better levels, as the EUR/USD fell to 1.1326 before surging to a fresh weekly high of 1.1431, ahead of the release of FOMC Minutes. The US Central Bank statement reiterated that upcoming moves are data dependant, while also showed that an April rate hike was largely discussed, indicating that the FOMC is prepared to move even without a scheduled press conference. The minutes also showed that policy makers are more concerned over the persistent global risks than over the health of the American economy, as they acknowledged employment remains strong, whilst inflation is starting to rise. The greenback recovered some ground after the lessthanexpected Minutes’ dovish tone, which left doors open for a June hike, and sent the EUR/USD pair briefly below the 1.1400 region, but still within its latest range. Despite the pair has traded in quite a limited range ever since the week started, the downward potential seems well limited, as declines towards the 1.1300 region are being quickly reverted. Technically, the 4 hours chart shows that the pair is now above a horizontal 20 SMA, whilst the technical indicators head north above their midlines, favoring a continued advance. Given the latest moves however, the pair needs now to extend beyond the 1.1460 region, a strong long term static resistance level, to confirm a new leg higher to 1.1500 and beyond.
Support levels: 1.1370 1.1330 1.1280
Resistance levels: 1.1460 1.1500 1.1540
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EUR/USD
The EUR/USD pair closed the day slightly lower, but not far from the 1.1360/70 comfort zone, in where the pair has been stuck ever since the week started. Still, the common currency extended its rally up to 1.1453 against the greenback during the European morning, as dovish FOMC Minutes kept the American currency under pressure. The minutes of the ECB’s March meeting showed that the governing council is committed to keep rates down at least until 2018, and while it’s not willing to cut them further, will do if necessary. In the US, the release of weekly unemployment claims had no effect on the markets, despite initial claims declined by 9,000 to a seasonally adjusted 267,000 for the week ended April 1st, below market’s expectations. FED’s Yellen is due to participate in a panel discussion at the International House, in New York early Asia, although is unlikely she will offer something to work with. Technically, the EUR/USD pair has shown little progress so far this week, confined to a 150 pips range around the mentioned comfort zone, and despite the higher highs daily basis, unable to extend beyond a major static resistance level at 1.1460, the level that capped the upside ever since 2015 started. Now short term neutral, the risk remains towards the downside, as shallow pullbacks have steadily met buying interest. The pair has an immediate support around 1.1330, but it will take further declines, at least below 1.1280, to trigger some profit taking, and therefore a deeper decline for this Friday.
Support levels:1.1330 1.1280 1.1245
Resistance levels: 1.1420 1.1460 1.1500
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EUR/USD
Choppy trading has prevailed in the EUR/USD pair this past week, although the weak tone of the greenback maintains the pair near a fresh year high set at 1.1453. While plenty of data, including the minutes of both Central Banks, were released during these last few days, markets were subject of riskrelated sentiment trading. Sentiment is expected to continue leading the FX board during the upcoming days, but there are a couple of US macroeconomic releases that can determinate dollar’s fate, those are March inflation and Retail Sales. The first is expected to have surged partly due to higher gasoline prices, whilst the second will likely disappoint, by showing a modest rise, in line with the previous months readings.The EUR/USD pair closed the week flat at 1.1400, and from a technical point of view, further gains in the pair will depend on a clear break above the 1.1460 price zone, as with just one shortlived exception, strong selling interest has contained price’s advances around it since January 2015. Should the price extend beyond it, it would likely trigger stops and result in a strong rally up to 1.1714, 2015 yearly high. Daily basis, the bias is higher, as the technical indicators keep heading north within positive territory, whilst the 20 DMA maintains a strong bullish slope below the current level. Furthermore, the 100 DMA has extended its rally and is about to cross above the 200 DMA, something that should support a longer term advance. Shorter term, and due to this past week limited range, the pair maintains a neutral stance, with intraday buying interest aligned around 1.1330.
Support levels:1.1330 1.1280 1.1245
Resistance levels: 1.1420 1.1460 1.1500
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WTI CRUDE
Oil futures rose this Monday, with the US benchmark closing above $40.00 a barrel for the first time since March 22nd, while Brent crude futures closed the day near $43.00 a barrel, its highest since December 2015. The black gold was supported by a US government forecast saying that US shale oil production is expected to fall for a seventh month in a row in May, boosting hopes of a sooner end to the global glut that has kept prices depressed for over a year now. Ahead of oil producers meeting in Doha next Sunday, the daily chart for WTI shows that the commodity settled above its 200 SMA, for the first time in almost a month, while the technical indicators hold flat within positive territory, lacking enough momentum to confirm further advances. In the 4 hours chart, the technical indicators are retreating partially within overbought levels, whilst the 20 SMA accelerated its advance below the current level, and now converges with the 100 SMA at 39.10, providing a strong dynamic support in the case of a downward move.
Support levels:39.80 39.10 38.45
Resistance levels:40.80 41.50 42.30
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USD/JPY
The USD/JPY pair advanced modestly this Tuesday, reaching a daily high of 108.67 in the US session, as Japanese authorities offered another round of verbal intervention, as FM Aso said that that Japan will take “proper action” if there are extreme onesided FX moves. Also, weighing on the safehaven currency was an improvement in riskrelated sentiment, as Asian and European equities closed higher, whilst Wall Street reversed its Monday losses. The risk of further declines remains dormant, as this daily recovery is far from relevant. Short term, the 1 hour chart shows that the price stands a few pips above a strongly bearish 100 SMA, while the technical indicators are retreating from overbought levels, suggesting limited upward scope at the time being. In the 4 hours chart, however, the pair presents a slightly positive tone, as the Momentum indicator is crossing its 100 level towards the upside, whilst the RSI indicator stands flat around 50, suggesting the pair may advance further, particularly on a recovery above 108.90 the immediate resistance.
Support levels:108.40 107.95 107.65
Resistance levels:108.90 109.35 109.80
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EUR/USD
Risk appetite led the way this Wednesday, triggered by Chinese data released overnight which lifted hopes that the economy is finally stabilizing, as exports, in USD terms, rose by 11.5% in March whilst exports fell lessthanexpected, down by 7.6%, resulting in a trade surplus of $29.86B, down from $32.59B in February. Asian equities soared, with European and American indexes following the lead. Safehaven assets suffered the most, whilst commodities also dropped on the back of oil’s slide, all of which supported the greenback’s rally. In the data front, Industrial production in the EU declined by 0.8% in February, while January’s growth was revised down to 1.9%, weighing on the common currency. As for the US, data also disappointed, with retail sales unexpectedly falling in March by 0.3% and the Producer Price Index for final demand down by 0.1%. The EUR/USD pair plummeted to a fresh 2week low of 1.1271, and trades below the base of its previous range, where selling interest capped the recovery that followed US poor macro releases, indicating that the decline may extend further during the upcoming sessions, although the possible extension of this current bearish correction is not yet clear. So far, the 4 hours chart supports some additional declines, as the technical indicators have barely lost downward strength near oversold territory, whilst the price develops now well below a mild bearish 20 SMA. The immediate support comes at 1.1245, and a break below it could see the pair extending its decline down to 1.1120/60, a major support region, in where buying interest should resume to deny a longer lasting decline.
Support levels:1.1245 1.1200 1.1160
Resistance levels: 1.1335 1.1380 1.1420
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EUR/USD
The greenback maintained its positive tone particularly against its European rivals, although the strong momentum of the currency seen on Wednesday receded. Asian share markets edged higher, but concerns over global growth returned after Singapore cut interest rates by surprise as growth stalled, leading to a poor performance in European and American indexes. In Europe, attention focused in the final EU CPI for March, with the headline figure revised a notch higher to 0.0% yearonyear, the monthly reading unchanged at 1.2%, and core inflation left unrevised at 1.0%. In the US, weekly unemployment claims fell to its lowest since 1978, printing 258K in the week ended April 8th, but inflation rose lessthanexpected in March, up by 0.1% monthly basis and by 0.9% compared to a year before. Soft inflation readings will keep the FED on hold for longer, when it comes to raising rates.The EUR/USD pair fell to a fresh 2week low of 1.1233 early Europe, with the following bounce failing to extend beyond the 1.1300 level. The pair has been consolidating in a tight range for most of the American session, and holds around 1.1260. Technically, the 4 hours chart shows that the 20 SMA has accelerated its decline and now stands around 1.1340, whilst the technical indicators lack directional strength within oversold levels, far from supporting some additional gains for this Friday. Nevertheless, the pair needs to actually break below the 1.1200 to accelerate its decline, with scope now to extend down to 1.1120, a major static support zone.
Support levels:1.1235 1.1200 1.1160
Resistance levels: 1.1280 1.1330 1.1380
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EUR/USD
The EUR/USD pair corrected lower by the end of the last week, although the American dollar retains its long term negative tone against all of its major rivals. During this past week, commodity currencies were the biggest winners, fueled by improved market sentiment, as Chinese latest data was overall positive, with industrial production rising the most in almost a year. Industrial output rose 6.8% in March compared to a year earlier, while retail sales also beat market´s expectations, printing at 10.5%y/y in March versus 10.4% median forecast. Finally, China’s GDP for the first quarter printed at 6.7%y/y, matching forecast, but down from 6.8% in the December quarter.On Friday, poor US data put a halt to dollar’s advance, as it happened several times over these last few days. US industrial production fell 0.6% in March, compared to February, whilst the University of Michigan index of consumer sentiment for April fell to 89.7 compared to an expected 91.9. The EUR/USD par closed the week at 1.1282 after failing to surpass a major static resistance level, the 1.4160 region, tested at the beginning of the week. On Friday, the price was contained by 1.1315, the 23.6% retracement of the latest daily bullish run between 1.0821, March 3rd low, and the high posted at 1.1461 this April. The weekly decline stalled short from the 38.2% retracement of the same rally, at 1.1220, the level to break to confirm a steeper decline this week. In the meantime, the daily chart presents a limited bearish tone, as the price stands below a bullish 20 SMA whilst the technical indicators have crossed their midlines towards the downside, but lost bearish strength within neutral territory, indicating limited scope for additional declines. In the shorter term, the 4 hours chart maintains a negative tone, as the price remains capped by a bearish 20 SMA whilst the technical indicators have lost upward steam after bouncing from their midlines, and the RSI already turned south, increasing the risk of a new leg south.
Support levels:1.1235 1.1200 1.1160
Resistance levels: 1.13001.1335 1.1380
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EUR/USD
The American dollar resumed its decline this Tuesday, falling to fresh multimonth lows against most of its major rivals. Riskon lead the way, fueled by another daily gain in oil prices that extended above Friday’s closing levels. The USD was the worst daily performed, although the EUR and the JPY also underperformed due to their condition of funding currencies. Nevertheless, the common currency advanced up to the 1.3780 region against the greenback and closed the day near its high, with solid gains that support further gains for this Wednesday.Data came in mixed in Europe, and negative in the US, adding to the USD bearish case. The German ZEW survey showed an increase in the economic sentiment for the country, and the region, in April, although the assessment of the current situation fell, indicating that fears of a global economic slowdown persists. US housing data took a turn for the worst, as housing starts fell more than expected in March, plummeting 8.8% to 1.089 million, the lowest since October, whilst building permits declined by 7.7% to a 1.086 million annualized rate. As for the technical outlook of the EUR/USD pair, the lack of upward momentum is present ever since the day started, and continues ahead of the Asian opening, as in the 4 hours chart, the technical indicators hold well above their midlines, but with no directional strength. In the same chart, the price recovered above a now bullish 20 SMA, suggesting the rally may extend during the upcoming sessions, particularly if markets’ mood remains positive. Nevertheless, seems unlikely the market will dare to push the pair beyond the 1.1460 region ahead of the ECB economic policy decision, next Thursday, with speculators expected to take profits out of the table on approaches to this last.
Support levels:1.1335 1.1280 1.1235
Resistance levels: 1.1420 1.1460 1.1500
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EUR/USD
The American dollar edged higher against most of its major rivals this Wednesday, exception made by commodityrelated currencies, which held on to gains amid oil prices rallying to fresh yearly highs. The US EIA report surprised with a smallerthanexpected increase in stockpiles, whilst distillates fell well beyond expected. The EUR/USD pair started the day with a positive tone, rallying to a fresh weekly high of 1.1387 before turning south in the American afternoon, more due to a continued improvement in risk sentiment than because of dollar’s self strength. Data coming from Europe disappointed, whilst the US posted some encouraging housing readings, reversing the latest trend. The German PPI fell 3.1% yearonyear in March, and came in at 0.0% monthly basis compared to February. US Existing Home sales bounced back in March up by 5.1% to a seasonally adjusted annual rate of 5.33 million in March from a downwardly revised 5.07 million in February. Anyway, all eyes are now on the ECB monetary policy meeting this Thursday, in where Mario Draghi is expected to maintain the policy on hold, but with no doubts will offer enough rhetoric to shake the EUR.The latest pullback in EUR/USD´s price has sent the pair below the 23.6% retracement of the latest daily bullish run, and the 4 hours chart shows that the price has broken also below its 20 SMA whilst the technical indicators head sharply lower, and have entered negative territory, suggesting the decline may extend during the upcoming Asian session. The pair has an immediate support in the 1.1270/80 region, followed later by 1.1220, the 38.2% retracement of the mentioned rally. If the pair has a chance to break below this last, will be with Draghi’s words, and will probably mean a downward continuation towards the 1.1120/60 price zone.
Support levels:1.1275 1.1220 1.1160
Resistance levels: 1.1350 1.1390 1.1420
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EUR/USD
The main market focus and driver this Thursday, was the ECB and its economic policy meeting, and as expected, the European Central Bank did not announce any new measures, centering on the implementation of the batch of policies announced last month. The American dollar turned south ahead of the event, and the EUR/USD pair spiked during the press conference up to 1.1398, in where ECB’s President, Mario Draghi, reckoned that the downward risk towards inflation persist, and that it may fall back into negative territory during the upcoming months, before picking up by the end of the year. The generally dovish tone of the press conference, and the failure of the common currency to regain the critical 1.1400 level, finally resulted in an uturn of the greenback, which soared across the board as Draghi kept the door open for additional easing in the future.EUR saw its gains rapidly eroded after market’s attention shifted towards the upcoming FED meeting next week, as somehow, market expects a hawkish statement, preannouncing a June rate hike. The EUR/USD pair ended back where it started, below the 1.1300 level and the 23.6% retracement of the latest daily bullish run at 1.1315. The long upper wick of the daily candle suggests that bulls are in retreat mode, implying the pair can fall further during the upcoming days. From a technical point of view, the pair presents a neutraltobearish stance, as in the 4 hours chart, the price is below a horizontal 20 SMA, whilst the technical indicators head nowhere within negative territory. The pair needs to break, either below 1.1220, the 38.2% retracement of the mentioned rally, or above 1.1460, a major static resistance, to be able to find a clear directional path.
Support levels:1.1270 1.1220 1.1160
Resistance levels: 1.1315 1.1340 1.1390
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WTI CRUDE
West Texas Intermediate crude oil futures closed the week at levels last seen in November 2015, having extended its yearly rally up to $44.47 this past week. On Friday, however, the commodity retreated partially, in spite of news showing that US operating rigs fell by 8 to 343 in the week ended April 22, the fewest since November 2009, according to the Baker Hughes report. It was the fifth straight weekly decline, even as oil prices continued to rebound. The commodity rose amid improved market sentiment, which turned more upbeat on signs that the global supply glut may be finally easing. Technically, the daily chart shows that the indicators have retreated partially from overbought territory, but are far from suggesting the price may fall further. Shorter term, and according to the 4 hours chart, the downward potential remains also limited, as despite the technical indicators have lost upward strength, the price remains well above its moving averages, while approaches to the 43.00 level have been steadily attracting buying interest.
Support levels: 43.05 42.60 42.10
Resistance levels: 44.30 44.90 49.40
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EUR/USD
Majors passed through a lackluster Monday with little definitions, but the dollar edged generally lower whilst the Pound outperformed due to diminishing fears over a Brexit. A sparse macroeconomic calendar and some soft readings in the US housing sector during the American afternoon led the greenback’s decline during the US session, although weaker commodities weighed on the AUD and the CAD, which closed the day pretty much unchanged from Friday’s closes.In the EU Germany released its IFO survey, which missed market’s expectations in April, but showed that sentiment remained stable, as the assessment of the current situation down to 113.2 from 113.6, and expectations up to 100.4, above March 100.0, but a tad below expectations of 100.8. In the US, New Home sales decreased 1.5% in March to a 511,000 annualized pace, missing the median forecast for a gain to 520,000. Markets attention is centered in the upcoming FED and BOJ’s meetings, both expected to shed some light over upcoming economic policies. And while the first is expected to take one step towards a new rate hike, the second is largely expected to maintain the easing path. The EUR/USD pair fell down to 1.1215 early Asia, but was unable to extend its decline below a major static support the 38.2% retracement of the latest daily advance around 1.1220, and dedicated the day to recover some ground, stretching up to 1.1277. The EUR may advance further, up to the 1.1310 region, the 23.6% retracement of the mentioned rally, given that in the 4 hours chart, the price is aiming to advance above a still bearish 20 SMA, whilst the technical indicators maintain bullish slopes within negative territory, but remain below their midlines.
Support levels:1.1250 1.1220 1.1160
Resistance levels: 1.1315 1.1340 1.1380
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WTI CRUDE
Crude oil gained more than 3% on Tuesday amid a weaker US dollar, while investors await API inventories data later on the day ahead of the US Government oil stockpiles report due on Thursday. West Texas Intermediate crude for June delivery rose $1.40, or 3.3%, to settle at $44.04 a barrel on NYMEX, marking the highest settlement so far this year. The daily chart for the commodity shows that the price is close to the yearly highs posted earlier this month at $44.47, and that remains well above its 100 and 200 SMAs, with the shortest slowly turning higher, but still far from signaling a steeper recovery in prices. In the mentioned time frame, the Momentum indicator continues heading south towards its 100 level, but the RSI resumed its advance and heads north around 62, limiting the downside. In the 4 hours chart, the technical stance is bullish, as the price is well above its moving averages that maintain strong bullish slopes, whilst the RSI indicator hovers around 59.
Support levels: 43.40 42.60 41.90
Resistance levels:44.50 45.10 45.80
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EUR/USD
Majors traded within limited ranges during the first half of the day, as markets awaited the US Federal Reserve latest economic policy decision that anyway resulted a disappointment, as the Central Bank failed to clarify the date of an upcoming rate hike. The dollar initially rallied across the board, on a headline announcing that the FED is no longer concerned over the economic slowdown, by omitting to say that “global economic and financial developments continue to pose risks,” whilst once again, they seem comfortable over the developments of the job’s sector. Finally, the committee reiterated that it will probably raise rates at a “gradual” pace. Anyway, the statement failed to clearly hint an upcoming rate hike, and chances have diminished for a move during the June meeting. After investors digested the news, the dollar is modestly lower across the board, with all eyes now on the Bank of Japan’ decision, to be announced some time during the upcoming Asian session.The EUR/USD pair traded between 1.1271 and 1.1360 right after the event, settling finally above 1.1315, the 23.6% retracement of the March/April bullish run, and presents a mild positive tone in the 4 hours chart, as the low converges with the 20 SMA, whilst the technical indicators head modestly higher within bullish territory. Overall, the upside remains favor, yet the pair needs to advance beyond the immediate resistance formed by the 1.1380/90 region to be able to continue rallying towards the 1.1460 region. Bulls will maintain the lead as long as the price holds above 1.1270.
Support levels:1.1270 1.1230 1.1200
Resistance levels: 1.1385 1.1420 1.1460
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EUR/USD
Federal Reserve, the Bank of Japan decided to stay path, with Kuroda saying they need more time to assess the effects of negative rates. The EUR/USD pair, despite reaching a fresh weekly high of 1.1367, was unable to benefit much, as data coming from both shores of the Atlantic, resulted mixed. In Germany, unemployment fell by 16,000 and wages grew during April, but harmonized inflation fell into negative territory, down 0.3% monthly basis, and by 0.1% compared to a year before.US data was also mixed as the advanced GDP for Q1 showed the economy grew at an annualized rate of 0.5% against the 0.7% expected, the slowest pace in two years, underlying the slowdown suffered by the US economy since the last quarter of 2015. Core CPE on the other hand, jumped to 2.1% during the quarter, which could heighten expectations that the Fed could act sooner than expected, particularly if the economy gives some signs of further recovery.Having advanced for a fourth consecutive day, the EUR/USD pair has broken above the 1.1315 Fibonacci level early Asia, and retracements towards the level during the next sessions attracted buying interest. Nevertheless, the 4 hours chart presents a neutraltobullish stance, as the technical indicators head nowhere within positive territory, but the price is above its moving averages, with the 20 SMA heading north around 1.1310. The pair has still to beat the strong resistance in the 1.1380/90 region to be able to advance further, eyeing then a retest of the 1.1460 price zone, a major long term resistance level.
Support levels:1.1315 1.1270 1.1230
Resistance levels: 1.1385 1.1420 1.1460
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EUR/USD
Federal Reserve, the Bank of Japan decided to stay path, with Kuroda saying they need more time to assess the effects of negative rates. The EUR/USD pair, despite reaching a fresh weekly high of 1.1367, was unable to benefit much, as data coming from both shores of the Atlantic, resulted mixed. In Germany, unemployment fell by 16,000 and wages grew during April, but harmonized inflation fell into negative territory, down 0.3% monthly basis, and by 0.1% compared to a year before.US data was also mixed as the advanced GDP for Q1 showed the economy grew at an annualized rate of 0.5% against the 0.7% expected, the slowest pace in two years, underlying the slowdown suffered by the US economy since the last quarter of 2015. Core CPE on the other hand, jumped to 2.1% during the quarter, which could heighten expectations that the Fed could act sooner than expected, particularly if the economy gives some signs of further recovery.Having advanced for a fourth consecutive day, the EUR/USD pair has broken above the 1.1315 Fibonacci level early Asia, and retracements towards the level during the next sessions attracted buying interest. Nevertheless, the 4 hours chart presents a neutraltobullish stance, as the technical indicators head nowhere within positive territory, but the price is above its moving averages, with the 20 SMA heading north around 1.1310. The pair has still to beat the strong resistance in the 1.1380/90 region to be able to advance further, eyeing then a retest of the 1.1460 price zone, a major long term resistance level.
Support levels:1.1315 1.1270 1.1230
Resistance levels: 1.1385 1.1420 1.1460
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EUR/USD
The dollar’s bearish trend extended to fresh lows at the beginning of May, down against all of its major rivals. The EUR/USD pair advanced up to 1.1534, level last seen in August 2015 when Chinese Black Monday sent the dollar sharply hundred of pips lower across the board. In the macroeconomic front, data coming from Europe showed that the manufacturing sector in the region grew modestly in April, as the final revisions of the Markit manufacturing PMIs came in mixed, with German reading up to 51.8, from March’s 50.7, but below expectations, whilst the EU figure resulted at 51.7 and French one plummeted to 48.0. Things in the US were not better, as the ISM manufacturing declined to 50.8 in April from 51.8 in March, whilst the Markit manufacturing PMI also printed 50.8. Also released this Monday, US construction spending advanced in March to its highest level in more than eight years, up 0.3% from the previous month, giving hopes the first quarter slowdown receded, at least in the housing sector. The pair stands firmly above the 1.1500 figure, with scope to reach 1.1713, the high reached last August, and well above the 1.1460 region, now a major support level. As long as retracements towards the level attract buying interest, the pair has scope to test such high. Intraday charts show that the bullish tone persists, despite indicators stand in extreme overbought territory. Some consolidation could be expected ahead of the Nikkei opening, yet additional advances beyond 1.1545, now the immediate resistance, should support an upward continuation for this Tuesday.
Support levels:1.1460 1.1420 1.1380
Resistance levels: 1.1545 1.1590 1.1630
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EUR/USD
The American dollar posted a strong comeback in the US afternoon after plummeting to fresh yearly lows against most of its major rivals. Commodity related currencies underperformed, with the Canadian dollar falling alongside with oil and the AUD hit by a surprise rate cut announced by the RBA early Asia. China was behind market’s anxiety, as the latest manufacturing PMI fell for fourteenth consecutive month, reviving concerns over a global economic slowdown. European stocks plummeted, closing the day in the red, helping the common currency in surging to a fresh 8month high of 1.1615 against the dollar. The release of betterthanexpected data in Europe fueled demand for the common currency, as in March, industrial producer prices rose by 0.3% in the euro area, following a 0.7% in the previous month. The pair began to ease after the release of poor UK data, which gave the greenback a breath that turned into a strong intraday advance following Wall Street’s opening. In the US there were no major announcements, although the IBD/TIPP Economic Optimism Index gained 2.4 points, or 5.2%, in May, posting a reading of 48.7 vs. 46.3 in April, suggesting consumer confidence in the country began to pick up. The EUR/USD pair fell as low as 1.1500 before finally bouncing, to close the day flat. Nevertheless, the downward kneejerk seems to have been merely corrective as in the 4 hours chart, the price remains far above a bullish 20 SMA, currently in the 1.1460 region, whilst the RSI indicator is resuming its advance after erasing extreme overbought conditions. Furthermore, and given the recent break above a major resistance, now support at 1.1460, the pair needs now to break below the 1.1380/1.1420 region to negate the ongoing bullish trend. The immediate resistance comes at 1.1565, and an upward extension beyond it should favor a retest of the mentioned high, en route to 1.1713, August 2015 monthly high.
Support levels:1.1500 1.1460 1.1420
Resistance levels: 1.1565 1.1615 1.1660
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EUR/USD
The American dollar posted a strong comeback in the US afternoon after plummeting to fresh yearly lows against most of its major rivals. Commodity related currencies underperformed, with the Canadian dollar falling alongside with oil and the AUD hit by a surprise rate cut announced by the RBA early Asia. China was behind market’s anxiety, as the latest manufacturing PMI fell for fourteenth consecutive month, reviving concerns over a global economic slowdown. European stocks plummeted, closing the day in the red, helping the common currency in surging to a fresh 8month high of 1.1615 against the dollar. The release of betterthanexpected data in Europe fueled demand for the common currency, as in March, industrial producer prices rose by 0.3% in the euro area, following a 0.7% in the previous month. The pair began to ease after the release of poor UK data, which gave the greenback a breath that turned into a strong intraday advance following Wall Street’s opening. In the US there were no major announcements, although the IBD/TIPP Economic Optimism Index gained 2.4 points, or 5.2%, in May, posting a reading of 48.7 vs. 46.3 in April, suggesting consumer confidence in the country began to pick up. The EUR/USD pair fell as low as 1.1500 before finally bouncing, to close the day flat. Nevertheless, the downward kneejerk seems to have been merely corrective as in the 4 hours chart, the price remains far above a bullish 20 SMA, currently in the 1.1460 region, whilst the RSI indicator is resuming its advance after erasing extreme overbought conditions. Furthermore, and given the recent break above a major resistance, now support at 1.1460, the pair needs now to break below the 1.1380/1.1420 region to negate the ongoing bullish trend. The immediate resistance comes at 1.1565, and an upward extension beyond it should favor a retest of the mentioned high, en route to 1.1713, August 2015 monthly high.
Support levels:1.1500 1.1460 1.1420
Resistance levels: 1.1565 1.1615 1.1660
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