The Euro is taking a breather on Thursday and eases from fresh six-month high at 1.1171, posted after strong four-day rally.
The move could be described as corrective on overextended daily studies and reduced pressure on US dollar amid the latest political turmoil in the US. Also, investors are looking to take profits on recent strong rally that may push the pair lower.
In absence of data from the Eurozone today, the pair is expected to be driven by technicals and development of the political situation in the US.
Reversal signal is developing on 4-hr chart as strongly overbought RSI and slow stochastic are turning lower.
Also, slow stochastic is overbought on daily chart and is expected to generate bearish signal.
However, Euro’s strong bullish sentiment suggests that correction should be limited.
Broken Fibo 61.8% of larger 1.1614/1.0338 descend at 1.1127 is so far acting as initial support and is holding today’s action.
Extended pullback should be ideally contained by broken weekly cloud top at 1.1065, however, deeper dips may extend towards former high at 1.1020 (08 May) and psychological 1.1000 support (reinforced by rising daily Tenkan-sen) which mark lower pivots, loss of which would trigger stronger correction and sideline immediate bulls.
Res: 1.1171; 1.1201; 1.1250; 1.1300
Sup: 1.1127; 1.1078; 1.1065; 1.1020
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
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.