EUR/USD analysis: bouncing from daily low, bearish anyway
|EUR/USD Current price: 1.1560
- Soft US manufacturing data and hawkish surprise from the BOE helped EUR bounce.
- Risk aversion keeping equities near weekly lows, further slides may weigh on the common currency.
The EUR/USD pair fell to a fresh yearly low of 1.1507, barely 2 pips below the previous one before bouncing some, getting some help from BOE's monetary policy announcement that paused high-yielding assets' slump. Nevertheless, the common currency holds near its daily low with the greenback benefiting from a risk-averse environment, spurred by increasing trade-war tension escalating globally, as several economies are announcing retaliation measures against Trump's tariffs on aluminum and steel imports. There were no relevant news coming from the EU, while the US released its weekly unemployment claims, which resulted at 218K for the week ended June 15, beating expectations of 220K and below the previous upwardly revised 221K. On a disappointing note, the Philadelphia Fed Manufacturing Survey came in at 19.9 for June, well below the previous 34.4 or the expected 29.0.
The EUR/USD pair barely reacted to US data, which hurt just modestly the USD and with the pair now trading around 1.1560 ahead of the US opening. In the 4 hours chart, the pair is currently trading below its 20 SMA, which caps the upside ever since the week started, while technical indicators bounced modestly within negative levels, but remain below Wednesday's highs, which were also made in bearish readings, all of which maintains the risk leant to the downside, at least as long as the price remains below the 1.1595 resistance. Renewed selling interest below the 1.1510 region should result in a steeper decline, with a possible downward target at 1.1420.
Support levels: 1.1510 1.1460 1.1420
Resistance levels: 1.1595 1.1630 1.1660
View Live Chart for the EUR/USD
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.