EURUSD price, despite bearish momentum signals by stochastic oscillator analysis and a “Dow Pattern” down trend observation within the daily chart, may look to bounce off the May 27th low (1.0819) level to seek a lower top, ideally, around the 1.0970’s -1.1030’s. Short term traders may look into selling at any strength around the mentioned lower tops with targets into the 1.0750’s.
The EUR economic calendar started out this week with steady German June PPI inflation data; German inflation fell -1.4& y/y with prices down 0.1% m/m, as heating oil prices dropped 4.1% m/m. Last week, the EUR faced several important thresholds in terms of the ECB policy meeting and some resolutions regarding Greece. This week, we have a relatively light economic calendar so traders should expect to see lower volatility levels from last week with price action firmly in control of the technical traders.
The dollar is firm against gold and the AUD in overnight Asian trade, although, the AUD has since recovered off today’s lows. This USD strength is set to resume from Friday trade as in-line CPI and better housing starts, numbers give support to the USD.
Currency Pairs, Grouped Performance (% change)
The new Currency Movers Charts show the percentage change from previous day’s close to the current moment against the other major currencies.
This morning EUR is trading lower against commodity dependent currencies’ such as the CAD, AUD and NZD performance remains firm against the USD. The NZD is stronger across the board against most pairs.
Significant daily support and resistance levels for these pairs are:
Main Macro Events Today
• German Jun PPI inflation: was steady at -1.4% y/y, with prices down 0.1% m/m, as heating oil prices declined 4.1% m/m, after rising 2.4% m/m in May. Energy prices dropped 4.4% y/y and remain the dominating factor behind the sharp decline in prices over the year.
• CAD Wholesale Sales: for May are forecasted to come in at 0.5%, median -0.2% down from last 1.9% on the back of weaker commodity prices.
• USD Treasury Secretary Lew Speaks: is due to speak about the importance of financial reform.