EURUSD – A Look at the Big Picture for Euro
Key Highlights-
Euro looks like trading inside a monster ascending channel formed on the daily chart vs the US Dollar.
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The recent failure in EURUSD was around the channel resistance area at 1.1600.
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Today, in the Euro zone there is hardly any major market moving event lined up.
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In the US, the NAHB Housing Market Index will be released by the National Association of Home Builders, which is forecasted to post a minor increase from 58 top 59 in May 2016.
EURUSD Technical Analysis
The Euro recently climbed a few pips above the 1.1600 where it found sellers vs the US Dollar, and started to move down. There is a monster ascending channel formed on the daily chart of the EURUSD, which is acting as a catalyst.
The pair recently failed near the channel resistance trend line, and moved down. On the downside, there is a crucial support area around the channel trend line, as the 100 and 200 day simple moving averages are positioned.
So, if the pair continues to move down, then there are chances of it finding bids near the 1.1240 area.
US NAHB Housing Market Index
Today in the US, the NAHB Housing Market Index, which presents home sales and expected home buildings in the future indicating housing market trend in the United States will be released by the National Association of Home Builders. The forecast is lined up for a minor increase from 58 top 59 in May 2016.
If the result is as per the market expectation, then the US Dollar may gain bids in the short term vs the Euro. There may be less or no action during the London session due to the Whit Monday bank holiday.
