The EUR/USD has increased in the early morning, but the perspective remains bearish on the short term as the price is located below below and important dynamic resistance, the USD could drag the price down if the USDX will have enough energy to jump higher again, the index has decreased sharply in yesterday’s US trading session, has resumed the bearish movement today, but the index could start another leg higher if the 94.23 static support will hold and will reject the rate in the coming hours.
The EUR remains firm after the Euro-zone economic data, the Current Account has increased from 26.3B to 36.2B, have increased unexpectedly higher as the traders have expected a drop to 24.7B,while the Italian Trade Balance has decreased from 5.23B to 4.52B, has reached the lowest level of the last 2-months. The EUR/USD is pressuring an important resistance level, remain to see how will reach after the ECB President speech, Mario Draghi will speak later this afternoon in Munich, but I don’t think that will have any major impact on the price action.
Technically the pair is somehow expected to drop again because the USDX has could increase again till the end of the week, the greenback could increase if the United States data will come in line with expectations or better. The Building Permits could increase from 1.12M to 1.15M in May, while the Housing Starts could decrease from 1.17M to 1.15M in May, the data could help the USD to increase further on the short term versus all its counterparts, but a disappointment today will punish the USD, could slip lower again if the data will come worse in this afternoon, in my opinion the USD looks bullish and could ignore any poor data today.
2 thoughts on “EUR/USD could turn to the downside June 17, 2016”
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Excellent use of pitch forks.
Thanks Wayne !