EUR/USD Forex Technical Analysis for June 22, 2016
Forex Technical Analysis – The EUR/USD pair initially tried to rally during the day on Tuesday but turn right back around to form a very negative candle. We broke down through the gap that formed during the Monday session, and as a result it looks like the sellers are starting to take complete control. This makes a lot of sense though, because we have the EU referendum vote in the United Kingdom today, and of course it’s just going to be savored on the US dollar in general. The very negative candle of course is a sign that the sellers are starting to take control.
In other view point – EUR/USD in a tight range near 1.1260
The single currency is posting decent gains today following a selling mood around the greenback, with EUR/USD hovering over 1.1250/60 ahead of the opening bell in Euroland.
EUR/USD looks to Yellen
The pair is down around a cent since yesterday’s tops in the mid-1.1300s, following a pick up in the demand for the US dollar and dovish comments by ECB’s M.Draghi.
In the meantime, trade conditions are expected to shrink further as long with a cautious tone in the global markets as we get closer to the EU-UK Referendum due tomorrow.
Data wise today, USD will remain in centre stage in light of the release of Existing Home Sales and another testimony by Chairwoman J.Yellen.
EUR/USD levels to watch
The pair is now advancing 0.20% at 1.1263 and a break above 1.1302 (55-day sma) would open the door to 1.1338 (downtrend from 1.1617) and finally 1.1417 (high Jun.8). On the other hand, the immediate support aligns at 1.1186 (uptrend from 1.0820) followed by 1.1129 (low Jun.16) and finally 1.1100 (200-day sma).
In Other view point – Looking for an upside move
Hoping the price will get to 1.5000 on long term move to the upside. For now, looking forward to hit 1.3000 level. * This trading idea was published due to study purpose only. All the risk taking are at your own responsibility. Any thoughts and ideas please do share.