Advertisement
Advertisement

EURUSD Holds Steady at 1.16 Handle over Mixed Data on Both Sides of Pair

By:
Colin First
Published: Jun 5, 2018, 08:00 UTC

The pair has been holding steady due to lack of fundamental drivers

EURUSD Tuesday

The EURUSD continues to hold level at 1.16 price handle and is currently trading at 1.1687 as both sides of pair saw mixed outcome in macro data release yesterday. The corrective rally in the EUR/USD seems to have run out of steam around 1.17 in, but moving average studies indicate the upside could soon gather traction. So far the instrument has tried to breach 1.17 handle at multiple intervals in last three sessions but has always failed. The dollar was on the back foot during Asian market hours on Monday leading the EUR/USD pair to advance up to 1.1744 early US sessions, the highest in over the week. The greenback, however, regained its positive tone during US trading hours, despite disappointing local data, as US Factory Orders fell by more than expected in April, down 0.8% vs. March’s 1.7% advance. News coming from Europe was also tepid, as the Sentix Investor Confidence index fell in June to 9.3 from the previous 19.2 and well below the expected 18.4, while producer prices in the Union remained flat in April, leading to a YoY advance of 2.0%.

EURUSD Steady

Trade war concerns keep weighing on investors´ mood after EU Trade Commissioner Malmstrom said that they were looking into safeguards of steel and aluminum and added that first measures could come in as early as July. On Macro calendar, both sides of Atlantic will see release of May Markit Services and Composite PMI but no big revisions are expected there in either side of pair. While the Markit indices are expected to see little change from their initial estimates, the official ISM Non-Manufacturing PMI is expected to print 57.5 from the previous 56.8 and this could possible help dollar bulls regain upper hand over the common currency.

EURUSD Hourly
EURUSD Hourly

The pair shows neutral stance in technical chart, in 4 hour chart the price moves above 20 SMA, but below the 100 SMA and current price action shows lack of strength on both sides of pair and slow momentum. The risk of a downward move will remain limited as long as the pair holds above the 1.1600 figure, but further gains are still uncertain as there is possibility for US bulls to gain momentum post today’s macro calendar update. Expected support and resistance are at 1.1650 / 1.1625 / 1.1590 and 1.1735 / 1.1770 / 1.1810 respectively.

About the Author

Colin specializes in developing trading strategies and analyze financial instruments both technically and fundamentally. Colin holds a Bachelor of Engineering From Milwaukee University.

Did you find this article useful?

Advertisement