In This Article:
The EUR/USD pair displayed a negative performance in the early morning session. After remaining consolidated in the last night session, the pair was 0.13% down since the previous closing today. The primary reason for the slump in the pair was the rise of the Greenback. However, the Fiber found some support near 1.1180 levels laterwards, heading towards 1.12 levels.
The USD Index stood up in the Asian session, rising from 97.72 levels to 97.81 levels. The sudden upliftment was amid positive sentiment around trade deal. The US President is currently in Japan for his 4-days State Visit and would aim to draft a trade deal with Japan. Trump wants to avoid all the possible barriers in bilateral trade with the country to boost US exports. The President intends to minimize the enormous trade deficit between the countries.
Meanwhile, the US resist completing the trade talks with the Chinese Counterpart. The US uphold demands to change its state-run economy, which is more of “core interest” claims China. President Xi addressed the press that the US is trying to degrade the Chinese economy.
EU Elections displayed the Farage’s Brexit party winning UK seats. Also, UK PM Theresa May would step down on June 7. May’s successor would focus on getting the EU-UK divorce before the deadline of October 31 irrespective of a deal. Hence, chances of a hard Brexit stay high.
EUR/USD Impacting Events
The ‘Super Tuesday’ concerts with few significant EUR-specific events. One of those includes, the June GfK Consumer Confidence Survey for Germany. The market expects this survey figures to remain in-line with the previous numbers to 10.4 points. And, the EUR May Business Climate report is another significant event of the day. The Street analysts anticipate this Business report to appear bearish and come near 0.40 points.
For USD Index-related events, the S&P/Case-Shiller Home Price Indices (HPI) YoY will get released during the European session. The Consensus estimates this March YoY HPI to come near 2.8% to the prior 3%. Furthermore, the Conference Board of the US will issue the Consumer Confidence report.
Technical Analysis
The significant 50-days Simple Moving Average (SMA) was hovering above the EUR/USD pair. This position of the 50-days SMA alludes near-term bearish stance. Whereas the 100-days and 200-days SMA was flying below the Fiber, referring a long-term bull call. The Relative Strength Index (RSI) was near the 32 levels, signaled moderate selling. On the 1-Hour chart, the Bollinger Bands (BB) showcased bearish outlook. The EUR/USD pair appeared below the Central Line of the BB, and further even had breached the lower boundaries of the BB. These scenarios strongly suggested a bear call. However, if the pair continued to move downwards in the later period, then it may find support near 1.1172 levels. And, if the Fiber goes furthermore down, then the next support line awaits near 1.1107 levels. On the flipside, the EUR/USD pair may feel some resistance near 1.1215 levels.