News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Bullish
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here:https://t.co/ZNs4Qi8ieG https://t.co/UqZBBPZiOl
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/rChAkNqPL2
  • Long wick candles are recurrent within the forex market. This makes understanding the meaning behind these candles invaluable to any trader to comprehend the market dynamics during a specific period. Learn about the importance of extended wicks here: https://t.co/SIpslvhX0J https://t.co/jVxcE1QUBs
  • Safe haven stocks also allow traders to diversify their portfolio and reduce risk. Learn if safe-haven stocks are made for you here: https://t.co/MTc4tUDD6c https://t.co/DOQ6tyzep9
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/WQLZ1X7gIY
  • but the next major point in my view to monitor will be 52.76 - at least in the short term.
  • #Brent having broken above the pre-OPEC drop off at 45.51 is a huge deal considering it failed to crack resistance there in August (leading to the invalidation of "uptrend 2") and the psychological significance of that level https://t.co/LkEyRxFhnq
  • The New Zealand Dollar looks poised to extend its push higher against its haven-associated counterparts on robust economic data and a less dovish stance from the RBNZ. Get your $NZD market update from @DanielGMoss here:https://t.co/vytr4OR1Jy https://t.co/ZcxEUWIm8O
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2020? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/x8uyOHLtgE
  • The Swiss Franc may continue higher against the US Dollar as technical pressure favors USD/CHF bears..Get your $USDCHF market update from @FxWestwater here:https://t.co/yqJbbhAWiu https://t.co/CaMR0Vqd1m
EURUSD Chart Highlights Upcoming Cluster of Resistance

EURUSD Chart Highlights Upcoming Cluster of Resistance

2018-05-31 08:00:00
Nick Cawley, Strategist
Share:

EURUSD News and Talking Points

- Euro-Zone inflation is likely to beat expectations due to higher oil prices.

- EURUSD mini-rally may be impeded by chart resistance.

The DailyFX Q2 Trading Forecasts for all major currencies, commodities and indices, are now availableto download to help you make more informed trading decisions.

EURUSD Nears Resistance, Heavyweight US Data

EURUSD has rallied back in the last 48-hours as political tensions, and bond yields, ease. While the pair may still be in a downward trend, the recent snap-back looks likely to continue although upcoming heavyweight US data may stall the move. Later today, the Fed preferred measure of inflation, core PCE will be released along with initial jobless claims and pending home sales. And to round the week off on Friday, the monthly non-farm payrolls and ISM manufacturing data.

In Europe, May inflation data is expected to show a pick-up in price pressures due to higher oil prices, with the headline figure rising from 1.2% to 1.8% or higher, while core inflation is expected to nudge up to 1.0% from 0.7%, still a long way from the ECB’s mandate.

The recent EURUSD rally from a 10-month low of 1.15099 is now facing a cluster of resistance levels that need to broken – and closed above – if the pair are going to push further ahead. First up the 38.2% Fibonacci retracement of the January 2017 – February 2018 move at 1.17095 which lies just below the 1.17175 December swing low. Just above this, the 20-day moving average at 1.17710 will provide further resistance.

The latest IG Client Sentiment Indicator shows retail however are 52.5% net-long EURUSD but recent positional changes suggest that the pair may move higher.

EURUSD Price Chart Daily Timeframe (December 2016 – May 31, 2018)

EURUSD Chart Highlights Upcoming Cluster of Resistance

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the EURUSD? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES