EUR/USD - Post-NFP and Technical Developments to Watch: key trend line resistance at 1.1380
7 June 2015, 21:11
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Technical Developments to Watch:
- EUR/USD still below key trend line resistance at 1.1380
- GBP/USD testing key support at 1.5190
- USD/JPY at a 13-year high, bias bullish above 124.15
- NZD/USD in play, potential for another leg lower if RBNZ cuts rates
- EURUSD exploded higher early last week before but gave back most of its gains on Thur. & Fri.
- MACD and Slow Stochastics show balanced, two-way trade
- Key support sits in the mid-1.0800s
EURUSD had a rollercoaster ride of a week, spiking nearly 500 pips trough-to-peak before giving back over 300 pips in the wake of Friday's strong NFP report. Meanwhile, both the MACD and Slow Stochastics are now in neutral territory, signaling balanced, two-way trade. Traders are clearly trying to sort out last week's volatile price action, but from a longer-term perspective, the one-year bearish trend line perfectly capped last week's rally, so we're inclined to give the bears the benefit of the doubt as long as EURUSD holds below 1.1380.
