The EUR/USD pair trades flat for a second consecutive day, stuck around the 50% retracement of its May decline, the price zone reached after a horrid US Nonfarm Payroll report put the greenback in sell-off mode. The pair held within Monday's range, as a scarce calendar failed to motive investors. A review of the Eurozone Q1 GDP confirmed that the region grew 0.6% during the first three months of the year, whilst the most relevant piece of news coming from the US was the IBD/TIPP Economic Optimism Index that dropped 0.5 points, or 1.0%, in June, posting a reading of 48.2 against 48.7 in May and expectations of 49.1. As for the technical picture, the pair has little directional strength, and there are good chances that it will continue trading range bound ahead of next week's FED meeting. Overall, technical readings favor the upside, as in the 4 hours chart, the 20 SMA has extended its rally after crossing the 100 SMA and is about to advance beyond the 200 SMA, while the RSI indicator keeps consolidating in overbought territory, while the Momentum indicator keeps correcting extreme readings, heading south within positive territory. The line in the sand towards the downside stands at the 1.1280/90 region, where buying interest will likely surge on dips, whilst the critical resistance comes at 1.1460 a major long term static level. Support levels: 1.1330 1.1280 1.1240 Resistance levels: 1.1415 1.1460 1.1500 EUR/JPY Current price: 121.87 The EUR/JPY pair retreated from a daily high of 122.64, to close modestly lower around 121.85, as the Japanese Yen got a boost from falling US yields, following Yellen's lack of conviction over a rate hike this summer on her Monday's speech. The short term technical outlook favors the downside, although there's a clear absence of directional strength at the time being, given that in the 1 hour chart, the technical indicators head nowhere within bearish territory, whilst the price rests above its 100 SMA around 121.75. In the 4 hours chart, the technical indicators are posting modest bounces from their mid-lines, but remain below early highs, whilst the price faltered around the 100 SMA currently capping the upside around 122.70. Support levels: 121.75 121.30 120.80 Resistance levels: 122.35 122.70 123.10 GBP/USD Current price: 1.4552 The British Pound saw some wild intraday moves this Tuesday, which resulted in the GBP/USD pair shooting up to 1.4657, almost 2 cents in a matter of minutes during Asian trading hours. Some attributed the move to a "fat finger" while others pointed for diminishing "leave" vote in a new poll, but actually, there was no clear reason behind the movement. It was the first, but it won't surely be the last ahead of the Brexit referendum next June 23rd. The UK will finally have a more entertained macroeconomic calendar this Wednesday, with the release of manufacturing and industrial production figures for April, and the NIESR GDP estimate, which will give clear signs on how the UK economic health is doing. Despite the pair retreated from the mentioned high, it holds on to gains daily basis, having also filled the weekly opening gap. The 4 hours chart shows that the price remains well above its moving averages, with the 20 SMA advancing below the 200 EMA, and also that the technical indicators have turned sharply lower within positive territory, limiting chances of further advances. The 1.4520 level is the immediate support, with the risk turning south on a break below it. Support levels: 1.4520 1.4470 1.4425 Resistance levels: 1.4615 1.4660 1.4700 http://www.fxstreet.com/analysis/eur-usd-no-big-trigger-expected-until-fed-s-meeting-201606071851
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The EUR/USD pair trades flat for a second consecutive day
Written By Unknown on Thursday, June 9, 2016 | 7:52:00 AM
The EUR/USD pair trades flat for a second consecutive day, stuck around the 50% retracement of its May decline, the price zone reached after a horrid US Nonfarm Payroll report put the greenback in sell-off mode. The pair held within Monday's range, as a scarce calendar failed to motive investors. A review of the Eurozone Q1 GDP confirmed that the region grew 0.6% during the first three months of the year, whilst the most relevant piece of news coming from the US was the IBD/TIPP Economic Optimism Index that dropped 0.5 points, or 1.0%, in June, posting a reading of 48.2 against 48.7 in May and expectations of 49.1. As for the technical picture, the pair has little directional strength, and there are good chances that it will continue trading range bound ahead of next week's FED meeting. Overall, technical readings favor the upside, as in the 4 hours chart, the 20 SMA has extended its rally after crossing the 100 SMA and is about to advance beyond the 200 SMA, while the RSI indicator keeps consolidating in overbought territory, while the Momentum indicator keeps correcting extreme readings, heading south within positive territory. The line in the sand towards the downside stands at the 1.1280/90 region, where buying interest will likely surge on dips, whilst the critical resistance comes at 1.1460 a major long term static level. Support levels: 1.1330 1.1280 1.1240 Resistance levels: 1.1415 1.1460 1.1500 EUR/JPY Current price: 121.87 The EUR/JPY pair retreated from a daily high of 122.64, to close modestly lower around 121.85, as the Japanese Yen got a boost from falling US yields, following Yellen's lack of conviction over a rate hike this summer on her Monday's speech. The short term technical outlook favors the downside, although there's a clear absence of directional strength at the time being, given that in the 1 hour chart, the technical indicators head nowhere within bearish territory, whilst the price rests above its 100 SMA around 121.75. In the 4 hours chart, the technical indicators are posting modest bounces from their mid-lines, but remain below early highs, whilst the price faltered around the 100 SMA currently capping the upside around 122.70. Support levels: 121.75 121.30 120.80 Resistance levels: 122.35 122.70 123.10 GBP/USD Current price: 1.4552 The British Pound saw some wild intraday moves this Tuesday, which resulted in the GBP/USD pair shooting up to 1.4657, almost 2 cents in a matter of minutes during Asian trading hours. Some attributed the move to a "fat finger" while others pointed for diminishing "leave" vote in a new poll, but actually, there was no clear reason behind the movement. It was the first, but it won't surely be the last ahead of the Brexit referendum next June 23rd. The UK will finally have a more entertained macroeconomic calendar this Wednesday, with the release of manufacturing and industrial production figures for April, and the NIESR GDP estimate, which will give clear signs on how the UK economic health is doing. Despite the pair retreated from the mentioned high, it holds on to gains daily basis, having also filled the weekly opening gap. The 4 hours chart shows that the price remains well above its moving averages, with the 20 SMA advancing below the 200 EMA, and also that the technical indicators have turned sharply lower within positive territory, limiting chances of further advances. The 1.4520 level is the immediate support, with the risk turning south on a break below it. Support levels: 1.4520 1.4470 1.4425 Resistance levels: 1.4615 1.4660 1.4700 http://www.fxstreet.com/analysis/eur-usd-no-big-trigger-expected-until-fed-s-meeting-201606071851
