The EUR/USD edges higher during the Brexit referendum, the rate has reached new highs in the European trading hours, but looks like that has found strong resistance because the price is melting down on the short term, the greenback is trying to redeem ground as the US Unemployment Rate has decreased sharply again in the last week. The currency pair has managed to rebound in yesterday’s trading session, has managed to resume the bullish momentum and has jumped above the previous high from June 9, remains to see what will happen in the coming hours, because the USDX is giving bullish signs.
The EUR has increased today, even if the Euro-zone data has come mixed, the Flash Services PMI has decreased from 53.3 points to 52.4 points, has come much below the 53.2 estimate, while the Flash Manufacturing has increased from 51.5 to 52.6 points. Moreover the German Flash Services has decreased from 55.2 to 53.2 points, signaling that the expansion is slowing down, surprisingly or not, the German Flash Manufacturing has increased to 54.4 points, from 52.1, the manufacturing sector continues the expansion, while the French manufacturing and services sectors remain deep in the contraction territory.
The United States Jobless Claims have decreased unexpectedly lower, from 277K to 259K jobs in the last week, has come much below the 271K prediction, the initial claims have reached the lowest level of the last 8 weeks and have boosted the USD, the currency has. Most likely the USD will resume the upward momentum if the New Home Sales will come better than the 561K estimate, the greenback looks determined to climb higher as the Flash Manufacturing has reached the 51.4 points level, exceeding the 50.5 prediction.

The rate has increased again after the last drop and continues to stay much above the lower median line (LML) of the medium term ascending pitchfork, has manage to jump above the previous high from 1.1414 level, but the bears have dragged the rate lower again. The bullish outlook remains intact on the short term as the price is trading above the 1.1342 and above the 1.1376 broken resistance levels. I want to say that the next upside target is at the upper median line of the short descending pitchfork, actually we have a confluence area formed at the intersection of the upper median line with the 1.1466 horizontal resistance. As I’ve said in another article, the price could drop sharply only if will escape from the ascending pitchfork’s body, needs to take out the lower median line (LML) to be able to start a broader retreat.

The EUR/USD is retesting the 50% Fibnacci line because has failed to stay above the previous high from 1.1414 level, the rate has failed also to reach the median line of the minor ascending pitchfork, a drop below the 50%Fibonacci line could attract more sellers again, which could lead the rate toward fresh new lows, the perspective is somehow bearish as long as the price is trading below the upper median line of the descending pitchfork.

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