EUR/USD Hits First Target- Key Resistance Stands at 1.1230

• EURUSD hits initial targets- Constructive above Friday’s low
• Updated targets & invalidation levels

EURUSD Daily

Chart Created Using TradingView

Technical Outlook: Euro has taken out our initial topside target noted earlier this week at 1.1170. This level is defined by the 50% retracement of the Brexit decline and converges on former slope support heading into the July open. Likely to see some pullback here, but the trade remains constructive near-term while above today’s low at 1.1072 with a breach higher targeting more significant resistance at 1.1227/30 where the key 61.8% retracement converges on the 100-day moving average – note that this is an area of interest for possible exhaustion / short-entries. Continue tracking this setup and more throughout the week- Subscribe to SB Trade Deskand take advantage of the DailyFX New Subscriber Discount.

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• A summary of the DailyFX Speculative Sentiment Index (SSI) shows traders remain net short EURUSD - the ratio stands at -1.52(40% of traders are long)-bullishreading
• Yesterday the ratio was -1.19 (46% of open positions were long) - Short positions are 20.9% higher than yesterday and a staggering 53.1% above levels seen last week
• Open interest is 8.7% higher than yesterday and 9.5% below its monthly average
• The increase in short-positioning on building open interest keeps the long-bias in focus heading into the July open. Keep in mind we have U.S. Non-Farm Payrolls on tap next Friday.

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Relevant Data Releases Next Week

Other Setups in Play:

• Near-term Setups in NZD, CAD, EUR & USDOLLAR into the July Open
• NZD/USD Rally at Risk Ahead of ISM
• EURUSD Back at the June Open, Post-Brexit Rebound Eyes CPI for Fuel
• The Brexit Aftermath – Technical Outlook into the Month/Quarter Close

---Written by Michael Boutros, Currency Strategist with DailyFX

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