Euro FX Futures Test April Lows - Forex News by FX Leaders
Forex Markets

Euro FX Futures Test April Lows

Posted Tuesday, May 21, 2019 by
Shain Vernier • 1 min read

June Euro FX futures have posted a dismal month, mirroring the bearish action of the EUR/USD. Rates have fallen by more than 150 ticks through the first three weeks of May, largely due to a forex-wide resurgence of the Greenback. At the moment, it appears that currency traders are expecting this trend to continue as May concludes.

However, today hasn’t been a complete loss for the Euro. Earlier, Eurozone Consumer Confidence (May) came in at -6.5, well above projections (-7.6) and the previous release (-7.3). Although this figure remains in the negative, it did outperform expectations and has stimulated some intraday buying of the EUR/USD and June Euro FX.

June Euro FX Futures Approach April’s Low

The key level of 1.11500 has proven to be valid downside support, with the area withstanding a concerted late-April test. Now, it appears that June Euro FX bears are preparing to engage this number once again.

June Euro FX Futures (6E), Daily Chart
June Euro FX Futures (6E), Daily Chart

Here are the levels to watch in this market for the remainder of the session:

  • Resistance(1): Daily SMA, 1.12320
  • Support(1): April Low, 1.11565

Overview: It is an obvious point, but tomorrow’s FOMC Minutes are going to be the primary catalyst for the Euro FX and EUR/USD. If last night’s speech from Jerome Powell is any indication, the FOMC Minutes is likely to show us a “stay the course” mentality. Powell stated that rising levels of corporate debt do not pose a threat to the financial system. However, Powell also admitted that the situation is worth watching. These sentiments reinforce the concepts of “flexibility” and “patience” in regards to crafting monetary policy.

Unless the FOMC Minutes show a fracture in the committee’s adopted stance, June Euro FX futures will be in a position to take out April’s Low (1.11565) by Friday’s closing bell.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
EUR/USD has just jumped higher after rumours of a fiscal stimulus programme from the government
2 days ago
Comments

Leave a Reply

avatar
  Subscribe  
Notify of