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EUR/USD - Falling Wedge Broken; Confirming Breakout

In the 1H EUR/USD chart, we can see that a falling wedge has been broken. 

EUR/USD 1H Chart 6/16
(click to enlarge)

Here are a few notes on the 1H chart:
1) Price has broken above the wedge resistance, 200-, 100-. and 50-hour simple moving averages, and the 1.13 resistance area. Now price is back around 1.1250 testing the cluster of SMAs. If price can hold above 1.1250, it would respect these SMAs as support and provide another key bullish continuation signal. 
2) The RSI has tagged 70, which reflects initiation of bullish momentum. Now, if the RSI can hold above 40, it would reflect maintenance of this bullish momentum. 

Fundamental Factors:
We can see that during the 6/16 European session, the EUR/USD retreated around the time of the German ZEW Economic Sentiment release. The reading for June came in at 31.5, which missed forecasts of a 37.5 reading. The previous print was 41.9. We have seen this indicator deteriorate since March when it was 54.8. Although a reading above 0 shows optimism, we can see that sentiments have dimmed slightly, which suggests some headwind against the recovery the ECB wants to see. That can lead to a longer path on QE and can weaken the Euro. On the other hand, this is not the most important indicator for EUR/USD this week because there is still the FOMC statement and inflation report out of the US. 

Ahead of these key US data Wednesday and Thursday. The EUR/USD might stay put now between 1.1250 and 1.13. after Friday if price remains above 1.1250, we should anticipate further upside next week. However, if price is below 1.12 after Friday, we should expect a bearish outlook for the next week.

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