EUR/USD at the 1.3800 level.

EUR/USD bounced off the support at 1.1100 but that is likely just a temporary setback, especially considering the shooting star and doji candlesticks on the one-hour time-frame. The pair will likely test the aforementioned support again soon.
 
Bearish trend is still intact, slowly but surely, break below the support level 1.1100 probably lead to further decline and open the door to 1.10 zone.
 
The euro marked a slight increase against the dollar on Monday. Although the bulls prevailed, the single currency failed to recover the lost ground from the end of last week. However, short-term expectations are in favor of the euro. In this case the pair may try yo test the resistance at 1.1226. Support is seen at 1.1069 and 1.0998, and resistance at 1.226 and 1.1291.
 
Yesterday EURUSD initially fell but found enough support at 1.1097 to reverse and closed near the high of the day however did not had the strength to close above Fridays high, which suggests being slightly on the bullish side of neutral.

The pair is trading below the 10 and the 50-day moving averages that are acting as dynamic resistances although still trading above the 200-day moving average that is acting as a dynamic support.

The key levels to watch are: A daily resistance at 1.1237, the 10-day moving average at 1.1170 (resistance), a swing low at 1.1141 (resistance), a daily support at 1.1097 and the 200-day moving average at 1.1070 (Support).
 
Key levels to watch for today:
Support: 1.1069; 1.0998;
Resistance: 1.1226; 1.1291.
 

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The euro fell yesterday to 1.1097, which is the lowest value since mid-March. The single currency, however, managed to rise to 1.1150 as it reached the 200-day moving average, which proved to be strong support. For the last month the euro decreased by 2.7%, which was the first after four months of growth.
 
The US dollar traded near its strongest levels in two months thanks to growing expectations of an impending increase in US interest rates. The greenback are quite sought after Friday's speech by Federal Reserve Chairman Janet Jelen that an increase in interest rates in the coming months would be appropriate if the economy and the labor market continue to improve.
 
On Tuesday, the dollar continues to trade at two-month highs against other major currencies, as expectations of higher interest rates in the US next month, continues to support the national currency, while investors awaited the release of US statistics later in the session. The EUR/USD almost unchanged at 1.1136, compared with the 10-week low of 1.1097 on Monday.
 
The dollar rose slightly against a basket of major currencies on Tuesday after US economic data did not support expectations of an increase of the interest rate the Fed in June or July. The dollar index by 15.29 GMT+1 was trading at 95.829, down from a two-month peak of 95.968 reached on Friday. The euro rose to a session high of $ 1.1173, moving away from more than 10-weeks minimum set on Friday ($1.1096), but then fell to $ 1.1130.
 
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