EUR Analysis and Talking Points
- EURUSD | 50DMA Support Holding, Range Intact
- EURGBP | Bullish Momentum Persists, However, Trendline Resistance Remains Key
See the DailyFX Q3 FX forecast to learn what will drive the currency throughout the quarter.
EURUSD | 50DMA Support Holding, Range Intact
The pair has failed to push higher yet again, stalling in the upper 1.12 area. Consequently, EURUSD has made a retest of the 50DMA support (1.1243), which is holding thus far. However, with momentum indicators showing a slightly bearish bias, a closing break below raises scope for a move towards 1.12. That said, the trend is relatively weak, further signalling that the pair is likely to remain within its well defined 1.11-1.14 range. Of note, today will see the release of US retail sales, alongside a slew of Federal Reserve speakers.
EURUSD PRICE CHART: Daily Time Frame (Feb 2019 – Jul 2019)
EURGBP | Bullish Momentum Persists, However, Trendline Resistance Remains Key
The bullish momentum in EURGBP has shown little signs of easing with the cross making a break above the psychological 0.9000 handle. However, while DMI’s continue to point for further upside, the cross will face a key test from the descending trendline stemming from the 2017 and 2019 peak situated at 0.9035-40, which in turn may spark a pullback back towards the mid-0.89s.
EURGBP PRICE CHART: Daily Time Frame (Jun 2017 – Jul 2019)
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
