EURUSD consolidates around the trend line

14 June, 2019

On Thursday the 13th of June, trading on the EURUSD pair closed down. The rate dropped after the breakout of the 1.1285 support (trend line, lower boundary of the channel, and 45th degree at 1.1291). Pressure on the euro increased after a statement from the IMF labelling the Eurozone’s central economic forecast precarious.

Markets are currently under the influence of several factors: the likely lowering of interest rates by the Fed, the trade dispute between the US and China, uncertainty over Brexit, and sanctions against Iran and Venezuela.

Day’s news (GMT+3):

  • 15:30 US: retail sales (May).
  • 15:55 UK: BoE’s Governor Carney speech.
  • 16:15 US: industrial production (May).
  • 17:00 US: Michigan consumer sentiment index (Jun), business inventories (Apr).
  • 20:00 US: Baker Hughes US oil rig count.

Most of the majors are trading down in Asia. At the moment, we have a contradictory picture of the euro in terms of technical analysis. On the chart, I’ve laid out one scenario with a renewed minimum and a rebound to the balance line at 1.1290/95. Another potential scenario is a descending triangle formation and the downwards wave ending at 1.1251. I went with the first one because the stochastic is in the buy zone, and after a bullish divergence, there’s a good chance of the pair returning to around 1.13.

Source   Presented by Alpari
EUR/USD retreats from 2020 highs ahead of NFP7 Aug, 2020  

EUR/USD tests 1.1820 following Thursday's new YTD peaks above 1.19. German Industrial Production, trade figures surprise to the upside. US Non-farm Payrolls...

EURUSD: strong support kicks in at 1.17253 Aug, 2020  

Major currencies ended the week higher. Cable locked in the steepest gains against the dollar (+2.24%). The euro fared slightly worse (+1.04%)...

Dollar Down Again31 Jul, 2020  

The Dollar continued lower in what is now the biggest monthly decline the US currency has seen in a decade. The narrow trade-weighted USDIndex...

EURUSD: investors await Powell's speech29 Jul, 2020  

Markets now await the outcome of the FOMC's two-day meeting In line with the forecasts, rates are expected to be left unchanged in the range of 0.00%-0.25%...

EUR/USD to emerge above 1.18 with a dovish FED29 Jul, 2020  

EUR/USD has been firmly holding onto its massive gains ahead of the Federal Reserve's decision. A dovish message from the Fed and US politicians...

EURUSD: buying touches upper line of MA channel27 Jul, 2020  

In our view, the euro looks slightly overheated, and by the close of the week we expect to see a corrective movement. The price stopped at 157th degree near...

Further upside seen testing 1.18 and above27 Jul, 2020  

EUR/USD keeps pushing higher and tests 1.17 and beyond. Attention now shifts to the September 2018 highs above 1.1800. EUR/USD recorded new...

European PMIs: More good news for the euro?24 Jul, 2020  

With the EU recovery fund deal now in the rear-view mirror, euro traders will turn their sights to the Eurozone's preliminary PMIs for July, due at 08:00 GMT Friday...

Traders expected to cash in on long positions9 Jul, 2020  

Markets continue to focus their attention on continued economic recovery and improved prospects for the long-term future, although there are still momentary...