EUR/USD Daily Fundamental Forecast – June 19, 2017
The EURUSD pair had a volatile day on Friday but what should encourage the bulls is the fact that the pair managd to close higher on Friday and it also closed above some important support levels which means that the pair is still under the control of the bulls. The euro currency has been showing up itself to be very strong over the past couple of months despite the steady advancing dollar and this has ensured that the corrections in this pair have been shallow and have always been met by some strong bounce.
EURUSD In Bullish Grip
This is what we saw last week as well as the pair went down to the 1.1130 region during the course of trading, after the Fed hiked rates. The Fed also hit a bullish tone and this helped the dollar to strengthen across the board. But this did not last long and over the next couple of days, we saw the EURUSD pair recover and move above 1.12 to end the week and the pair continues to trade strong as of this morning as well.
It has to be noted that the pair has been strong not only because the euro has been having some good economic data come in but also due to the fact that, despite the Fed sounding positive about the economy, the economic data from the US has been weak over the last few weeks. It was the same case on Friday as well as the housing data came in weak and this was in addition to the weak employment numbers, retail sales data and the inflation data as well.
Looking ahead to the rest of the day, we do not have any major economic news from the Eurozone or the US and with today being the first day of the week, we can expect some consolidation and ranging in the EURUSD pair as usual with a slightly bullish bias.