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15 May 2015
EUR/USD: focus remains on US data ahead – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, argues that although technical indicators suggest the downside correction for EUR/USD will stand limited, price action ahead will likely depend on the US consumer confidence and industrial production data releases ahead.
Key Quotes
“The dollar is in recovery mode across the board this Friday, establishing fresh daily lows ahead of the US opening. The American currency found support in profit taking ahead of the weekend and lower bond yields.”
“The EUR/USD pair fell below the 1.1340 level ahead of the first US data release, of the day, the New York Empire State Manufacturing index for May that come out 3.09, better than the previous month, but below expectations, supporting a limited bounce in the EUR/USD pair.”
“There are still a few fundamental releases ahead in the US session, including Industrial Production and Michigan consumer sentiment that will likely define the trend for the rest of the day.”
“In the meantime, the EUR/USD 1 hour chart shows that the price remains well below its 20 SMA, whilst the technical indicators are aiming higher well below their mid-lines.”
“In the 4 hours chart, the 20 SMA offered support around the 1.1320 level, whilst the technical indicators head south above their mid-lines, supporting a limited downward extension for the upcoming hours that anyway will depend on US data.”
“Support levels: 1.1280 1.1250 1.1220”
“Resistance levels: 1.1370 1.1410 1.1445”
Key Quotes
“The dollar is in recovery mode across the board this Friday, establishing fresh daily lows ahead of the US opening. The American currency found support in profit taking ahead of the weekend and lower bond yields.”
“The EUR/USD pair fell below the 1.1340 level ahead of the first US data release, of the day, the New York Empire State Manufacturing index for May that come out 3.09, better than the previous month, but below expectations, supporting a limited bounce in the EUR/USD pair.”
“There are still a few fundamental releases ahead in the US session, including Industrial Production and Michigan consumer sentiment that will likely define the trend for the rest of the day.”
“In the meantime, the EUR/USD 1 hour chart shows that the price remains well below its 20 SMA, whilst the technical indicators are aiming higher well below their mid-lines.”
“In the 4 hours chart, the 20 SMA offered support around the 1.1320 level, whilst the technical indicators head south above their mid-lines, supporting a limited downward extension for the upcoming hours that anyway will depend on US data.”
“Support levels: 1.1280 1.1250 1.1220”
“Resistance levels: 1.1370 1.1410 1.1445”