Slobodan Drvenica
Windsor Brokers
The Euro fell sharply (making the biggest hourly drop in 1 1/2 month) and hit new two-week lows as comments from ECB President Draghi disappointed traders.
Draghi pointed to weakness in coming quarters, signaling that fresh stimulus would be required if inflation doesn't return to the target.
Renewed probe through key supports at 1.1208/04 (daily cloud base/Fibo 61.8% of 1.1116/1.1347) is generating bearish signal which would require confirmation on daily close below these levels.
Massive miss of German ZEW (Jun -21.1 vs -5.7 f/c) and weak EU inflation, added to strong bearish tone, proving negative stance of ECB's Draghi. The pair hit new low at 1.1181 (the lowest since 3 Jun) and eyes Fibo support at 1.1170 (76.4% of 1.1116/1.1347), with further weakness on bearish sentiment not ruled out. Daily stochastic continues to head south in deep oversold territory and generates initial warning of some adjustment. Broken cloud base now reverted to strong resistance which should keep the upside protected.
Res: 1.1200; 1.1208; 1.1222; 1.1242
Sup: 1.1181; 1.1170; 1.1160; 1.1134
Interested in EURUSD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.