EURUSD Fundamental and Technical Analysis
Monday, July 1, 2013
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We finished the second consecutive week of downside movement; the pair experienced a sharp fall, with strong momentum and volume and all the bulls could do was to briefly stop falling prices, not to reverse them. Overall the US economic indicators posted better than expected values, a fact which strengthened the greenback and contributed to the pair’s bearish week
Fundamental Outlook
The first day of the week brings us the release of the US Manufacturing Purchasing Managers’ Index, a leading indicator of economic health, focused on the manufacturing sector. Wednesday the ADP Non Farm Employment Change will be announced and will provide an early estimate for the Government issued indicator with the same name which comes out two days later.
Thursday is a very important day as the ECB will announce the Euro Zone Interest Rate and Mario Draghi (ECB President) will hold the usual Press Conference which is known to be a massive market mover. The United States celebrate Independence Day so US banks will be closed. The week finishes Friday with the US Non Farm Unemployment Change and the US Unemployment Rate. Both are major indicators and volatility is likely to be generated at the time of the release.
Technical Outlook
At the moment there are no major bullish signs so we anticipate further declines, with the next target being the support located at 1.2920. Adding to that, Friday’s candle is a pin bar which indicates that lower prices are possible. However it is known that after a sharp move, a retracement in the opposite direction is sometimes needed. If this is the case, the zone located around 1.3185 will provide good resistance.
Check the chart and my Recommendation :
Ayman khlifat On Twitter
Follow @aymankkhlifat
We finished the second consecutive week of downside movement; the pair experienced a sharp fall, with strong momentum and volume and all the bulls could do was to briefly stop falling prices, not to reverse them. Overall the US economic indicators posted better than expected values, a fact which strengthened the greenback and contributed to the pair’s bearish week
Fundamental Outlook
The first day of the week brings us the release of the US Manufacturing Purchasing Managers’ Index, a leading indicator of economic health, focused on the manufacturing sector. Wednesday the ADP Non Farm Employment Change will be announced and will provide an early estimate for the Government issued indicator with the same name which comes out two days later.
Thursday is a very important day as the ECB will announce the Euro Zone Interest Rate and Mario Draghi (ECB President) will hold the usual Press Conference which is known to be a massive market mover. The United States celebrate Independence Day so US banks will be closed. The week finishes Friday with the US Non Farm Unemployment Change and the US Unemployment Rate. Both are major indicators and volatility is likely to be generated at the time of the release.
Technical Outlook
At the moment there are no major bullish signs so we anticipate further declines, with the next target being the support located at 1.2920. Adding to that, Friday’s candle is a pin bar which indicates that lower prices are possible. However it is known that after a sharp move, a retracement in the opposite direction is sometimes needed. If this is the case, the zone located around 1.3185 will provide good resistance.
Check the chart and my Recommendation :
Ayman khlifat On Twitter
Follow @aymankkhlifat
