4 Jun 2015
EUR/USD sees profit-taking ahead of US NFP – FXStreet
FXStreet (Barcelona) - Valeria Bednarik, Chief Analyst at FXStreet, shares the technical outlook and key levels for EUR/USD, noting that the pair is seeing some profit taking ahead of the May US nonfarm payrolls scheduled to be released tomorrow.
Key Quotes
“The EUR/USD pair surged to a fresh 2 week high of 1.1379, erasing most of the ground lost to US up ticking inflation mid May. The pair accumulates a gain of around 360 pips from its weekly opening, despite over the last hour has retraced back below the 1.1300 level, as investors are taking profits out of the table ahead of the latest risk event of the week, US Nonfarm Payroll to be released early Friday.”
“There was no macro data in Europe, and the advance was lead by soaring German yields that have been on a wild advance this week. In the US, weekly unemployment claims resulted better than expected in the week ending May 29, down to 276K, whilst Nonfarm productivity during the Q1 shrank more than expected, down to -3.1% in line with the economic slowdown of those months.”
“Technically, the 1 hour chart shows that the price extended its decline after the US news, approaching a bullish 20 SMA, the immediate support around 1.1280. The technical indicators in the mentioned time frame have corrected overbought conditions, and now stand flat well above their mid-lines.”
“In the 4 hours chart, the technical indicators are turning lower in extreme overbought levels, although the price stands well above its moving averages, which suggest corrective downward movements will remain limited.”
“Support levels: 1.1280 1.1240 1.1200“
“Resistance levels: 1.1340 1.1385 1.1420”
Key Quotes
“The EUR/USD pair surged to a fresh 2 week high of 1.1379, erasing most of the ground lost to US up ticking inflation mid May. The pair accumulates a gain of around 360 pips from its weekly opening, despite over the last hour has retraced back below the 1.1300 level, as investors are taking profits out of the table ahead of the latest risk event of the week, US Nonfarm Payroll to be released early Friday.”
“There was no macro data in Europe, and the advance was lead by soaring German yields that have been on a wild advance this week. In the US, weekly unemployment claims resulted better than expected in the week ending May 29, down to 276K, whilst Nonfarm productivity during the Q1 shrank more than expected, down to -3.1% in line with the economic slowdown of those months.”
“Technically, the 1 hour chart shows that the price extended its decline after the US news, approaching a bullish 20 SMA, the immediate support around 1.1280. The technical indicators in the mentioned time frame have corrected overbought conditions, and now stand flat well above their mid-lines.”
“In the 4 hours chart, the technical indicators are turning lower in extreme overbought levels, although the price stands well above its moving averages, which suggest corrective downward movements will remain limited.”
“Support levels: 1.1280 1.1240 1.1200“
“Resistance levels: 1.1340 1.1385 1.1420”