The EUR/USD has found temporary resistance and now is
decreasing again on the short term, the pair is retesting  dynamic support (resistance has turned into
support), the price has decreased as the US dollar index has bounced back in
yesterday’s trading session, we’ll have to wait to see what will happen in the
coming hours after the Euro-zone and US data will be released, the fundamental
events could bring some action no this pair. The USD has received a helping
hand from the USDX, the index has managed to jump again above the 94.00
psychological level, but now looks like has found an intraday resistance.

The Euro has posted humble gains after the German Final CPI was
released, the Consumer Price Index has increased by 0.3% in Q1, matching
expectations, while the German WPI has increased by 0.9% in May, exceeding the
0.2% forecast, has increased much more compared to the 0.3% growth from April.  The French Industrial Production will be sent
to the public later and is predicted to increase by 0.5% in April, much higher
compared to the 0.3% drop from March, could increase again after 3-months and
could help the Euro to increase a little again. Moreover the Italian Industrial
Production  could increase by 0.3% in
April, higher compared to the 0.0% growth from March.

US is to release important economic data, the events could bring
life on the EUR/USD pair, the Prelim UoM Consumer Sentiment  could decrease from 94.7 to 94.1 points in
June, while the Federal Budget Balance could drop from 106.5B to -56.2B and
could harm the USD, a disappointment today could send the greenback tumbling on
the short term.

The pair is pressuring the median line of the short descending
pitchfork, the current retreat was somehow expected after the price has tested
the 50% Fibonacci line, you can see that the pair has failed to stabilize above
the minor horizontal resistance from 1.1376 level, now is trading also much
below the 1.1342 level, the pair could become strongly bearish again if will
fall below the median line of the short descending pitchfork. I want to remind
you that the perspective remains somehow bullish as long as the price is
trading above the lower median line of the medium term ascending pitchfork, you
can see that the price has found strong support above this dynamic support
level.

A broader drop could come only if the price will have the power to drop
below the lower median line of the ascending pitchfork, the pair continues to
trade in the extended sideways movement on the medium term, the price is
trapped below the 1.1466 horizontal resistance, we had several false breakouts,
but the buyers weren’t strong enough to hold the price above the major
obstacle.

 The price has found intraday
support at the median line of the descending pitchfork  and now is fighting hard to rebound on the
short term, could approach and retest the 1.1342 static resistance in the
coming hours, he could decrease along along the median line in the coming days,
the pair needs to take out the resistance from the 50% Fibonacci line if will
want to resume the upward movement.

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