Positive Session For The Greenback, EUR/USD In Rotation
Shain Vernier • 2 min read
The USD has put together a solid session. Gains against the Euro, British pound, and Swiss franc have been the highlights of today’s performance of the Greenback.
Amid a wide-open economic calendar, the EUR/USD has entered a rotational phase between daily support and resistance levels. As the week rolls on, the EUR/USD is sure to open up. The following events will drive participation and bring participation to this market:
European Council Meeting (May) Wednesday
E.U. Business Climate Report (June) Thursday
Germany CPI (June) Thursday
U.S. GDP (Q1) Thursday
E.U. CPI (May) Friday
U.S. Core Personal Consumption Friday
The calendar for this week is back-loaded with primary market drivers. U.S. GDP and E.U. CPI are sure to bring institutional players to the table. As the releases of Thursday and Friday draw near, be on the lookout for heightened volatility facing the EUR/USD.
At press time, the EUR/USD is trading between the SMA and Bollinger MP on the daily chart. This is a strong signal of rotation, indicating non-committal sentiment among currency traders.
Here are the levels to watch for the remainder of the session:
- Resistance(1): Daily SMA, 1.1713
- Support(1): Bollinger MP, 1.1677
Overview: Later today, members of the U.S. FED are scheduled to issue public comments. Little is expected, but reinforcing the hawkish tone of this month’s FOMC meeting is the likely scenario.
For now, the EUR/USD is in a holding pattern ahead of the coming late-week news. Trading rotational markets can be tricky, as price action is often lack-luster and choppy. While one can certainly fade the daily extremes via buying support and selling resistance, the trades are lower probability setups.
As with most things involved with active trading, patience is a virtue. It may be a good idea to wait for this market to open up a bit before becoming active.