EUR/USD Forex Technical Analysis for June 21, 2016
Forex Technical Analysis – The EUR/USD pair initially tried to rally during the day on Monday as we gapped at the open, but at the end of the day we did up turning right back around and filling that gap. At this point in time, you have to think that there is a slight advantage for the Euro because it’s not uncommon to fill the gap and then bounce again. However, this is mainly in reaction to the most recent polls coming out of the United Kingdom. Ultimately, this is a pair that will remain volatile so it is going to be difficult to trade but I believe that we bounce around between the 1.12 and the 1.14 levels in the meantime.
In Other View – EUR/USD around 1.1340 on upbeat ZEW
EUR/USD keeps the trade above the 1.1300 handle today, barely reacting to the positive results from the ZEW Survey.
EUR/USD ignores ZEW, looks to Draghi, Yellen
The pair kept the composure in spite of the ZEW Survey showed Economic Sentiment in both Euroland and Germany has come in above expectations for the month of June. In addition, Germany’s Current Conditions have also surprised to the upside at 54.5.
Spot navigates in a narrow range near 1.1330 after briefly testing the vicinity of key support at 1.1300 the figure during overnight trade, with traders now focusing on the speech by ECB’s M.Draghi and the testimony by Chief J.Yellen.
EUR/USD levels to watch
The pair is now advancing 0.17% at 1.1334 and a break above 1.1417 (high Jun.8) would expose 1.1466 (high Apr.12) and then 1.1617 (2016 high May 3). On the other hand, the immediate support aligns at 1.1306 (55-day sma) followed by 1.1262 (20-day sma) and finally 1.1129 (low Jun.16).
In Other View – EUR/USD outlook
Pair’s failure to take out the falling trend line resistance yesterday coupled with negative closing if followed by a break below 1.1306 (today’s low) would open doors for a drop to 1.1296 (23.6% of May 2014 high-Mar 2015 low) and 1.1282 (5-DMA). On the higher side, resistance at 1.1356 (23.6% of 1.0517-1.1616 + falling trend hurdle today) if taken out on day end closing basis would mean short-term bottom is in place at 1.1131 and could yield 1.15-1.1530 levels.