EUR/USD faces an uncertain path
June 18 (Reuters) -There is continued uncertainty over the direction of the euro. However, the overall bias is on the downside amid political turmoil in Europe and the daily technical chart.
EUR/USD has stabilised somewhat this week after France's Marine Le Pen signalled she didn't intend to pursue extreme fiscal policies if her far right party gets into power, and that she isn't pushing for Emmanuel Macron's ouster. However, spot is in danger of a bigger slump under the April 1.0602 low in coming sessions, especially as fourteen-day momentum remains negative.
While EUR/USD registered a close on Friday under 1.0722 Fibo, a 61.8% retrace of the 1.0602 to 1.0916 (April to June) EBS rise, it has closed back above it on Monday. That is a possible bear-trap, set when a market breaks below a technical level but subsequently reverses, which is usually a bullish sign.
However, only a break and close back above the thinning daily cloud resistance that currently spans the 1.0747-91 region, would confirm a shift back to the upside.
For more click on FXBUZ
Daily Chart: https://tmsnrt.rs/3Xwo1TJ
(Martin Miller is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
