EUR/USD Hangs In Bullish Territory
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.
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.