EUR/USD Hangs In Bullish Territory - Forex News by FX Leaders

EUR/USD Hangs In Bullish Territory

Posted Tuesday, June 11, 2019 by
Shain Vernier • 1 min read

It has been a tight early-week for the EUR/USD. Following last Friday’s bullish breakout, rates have consolidated in the vicinity of 1.1325. This has been a popular technical area over the past three months. April brought an extended consolidation around 1.1300 before eventually falling to 1.1110. Is the EUR/USD in the process of forming a similar intermediate-term top?

Simply put, it is too early to tell. However, we do know this about the EUR/USD:

  • The U.S. FED is overtly dovish and inflation remains below the long-term 2.0% peg.
  • A resolution to Brexit may be on the way shortly with a new U.K. P.M.
  • Technically, the EUR/USD remains firmly in bullish territory on the daily timeframe.
  • Global recession fears are taking hold as recent economic data points to a slowdown.

Add it all up: The dollar is in a position to weaken through June and the EUR/USD is likely to grind higher by month’s end.

EUR/USD: Technical Outlook

The daily technical outlook for the EUR/USD is relatively straight forward: June’s uptrend is currently valid.

EUR/USD, Daily Chart
EUR/USD, Daily Chart

Here are the levels to watch for the remainder of the session:

  • Resistance(1): Swing High, 1.1347
  • Support(1): 38% Current Wave Retracement, 1.1291

Overview: Right now, it is long-or-nothing for the EUR/USD. This market is tight, but bidders are still in control of the action. Until we see trade established beneath 1.1291, a long-side bias is warranted.

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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.
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