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EUR/USD Price Forecast: A Bullish Morning to Test Sellers at $1.02

For the EUR, it is a quiet start to the week on the Eurozone economic calendar. May trade figures for Italy are in focus this morning. However, following trade figures for the Eurozone, the numbers will likely have a muted impact on the EUR.

A lack of stats from Germany or for the Eurozone will likely leave the EUR/USD in the hands of market risk sentiment.

EUR/USD Price Action

At the time of writing, the EUR was up 0.57% to $1.01441.

A mixed morning saw the EUR fall to an early high of $1.00786 before rising to a high of $1.01490.

The EUR/USD broke through the First Major Resistance Level (R1) at $1.0121.

EURUSD 180722 Daily Chart
EURUSD 180722 Daily Chart

Technical Indicators

The EUR/USD will need to avoid a fall through R1 and the $1.0064 pivot to target the Second Major Resistance Level (R2) at $1.0155.

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Market risk sentiment will need to continue to improve to support a breakout from the morning high of $1.01490.

An extended rally would likely see the EUR/USD pair test resistance at $1.020 before any pullback.

The Third Major Resistance Level (R3) sits at $1.0246.

A fall through R1 and the pivot would bring the First Major Support Level (S1) at $1.0030 into play.

An extended sell-off throughout the day would likely test the second Major Support Level (S2) at $0.9973 and support at $0.9950.

The Third Major Support Level sits at $0.9882.

EURUSD 180722 Hourly Chart
EURUSD 180722 Hourly Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was still a bearish signal.

At the time of writing, the EUR sat above the 50-day EMA, currently at $1.01231.

The 50-day EMA narrowed to the 100-day EMA, with the 100-day EMA flattening on the 200-day EMA, EUR/USD price positive.

A breakout from R2 would support a run at 1.02 and the 100-day EMA, currently at $1.02328.

EURUSD 180722 4 Hourly Chart
EURUSD 180722 4 Hourly Chart

The US Session

It is a quiet day ahead on the US economic calendar. There are no US stats to consider nor any FOMC member speeches to monitor. The lack of stats and Fed chatter could see riskier assets under pressure should concerns over the economic outlook resurface.

This article was originally posted on FX Empire

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