EURUSD Chart: Ominous Death-Cross Portends Lower Prices
EURUSD News and Talking Points
- EURUSD chart looks weak and the downtrend remains intact.
- US Treasury yields edging back towards recent highs.
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EURUSD Remains Weak with Further Losses Likely
The single-currency looks set to weaken further in the weeks ahead after the formation of a ‘death-cross’ at the end of last week, a negative technical indicator. The chart signal occurs when the 50-day moving average moves below the 200-day moving average, highlighting slowing momentum. The cross also occurred on high turnover, another negative sign. This ‘cross’ shows short-term momentum in an asset class is falling and normally signals lower prices ahead. On the downside, EURUSD initial support is found at 1.15539 ahead of 1.14872.
The latest IG Client Sentiment Indicator shows retail are 57.9% long EURUSD but recent positional changes give us a mixed-bias on the pair.
DailyFX chief currency strategist John Kicklighter recently cautioned about jumping back into the EURUSD bear trend.
EURUSD Price Chart Daily Timeframe (October 2017 – June 5, 2018)
US Treasury Yields Moving Higher Again
The greenback continues to recover recent small losses, driven by supportive US Treasury yields. The 2-year is now back above 2.51% and closing back on its recent near-decade high of 2.59%, while the benchmark 10-year currently yields 2.94%. Next week the Fed is fully expected to raise interest rates by 0.25%, the second hike this year.
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.firstname.lastname@example.org 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.