EUR/USD: Modest Advance Keeps the Risk Towards the Upside

EUR/USD: Modest Advance Keeps the Risk Towards the Upside

8 June 2016, 21:37
Roberto Jacobs
EUR/USD: Modest Advance Keeps the Risk Towards the Upside

EUR/USD Current Price: 1.1402

The American dollar ends the day marginally lower against most of its major rivals, with the EUR/USD pair extending its rally up to 1.1410. There were no macroeconomic news coming from Europe, except that the ECB has officially started to buy corporate bonds, reportedly having started with the utilities sector, although local equities closed the day mostly in the red. The note of color this Wednesday came from commodities, as oil and gold extended their rallies to fresh multi-month highs.


The common currency maintains the modest positive tone seen ever since the week started, although upcoming events later this month, keep investors in cautious mode. The EUR/USD pair 4 hours chart, shows that the price has stalled its recovery and now consolidates, a few pips below the 61.8% retracement of its May decline, around 1.1420, the immediate resistance, with technical readings supporting some additional advances, as the RSI indicator resumed its advance after a consolidative stage within overbought levels, whilst the Momentum indicator picked up from its 100 line. In the same time frame, the 20 SMA has extended its advance to converge with the 50% retracement of the mentioned decline around 1.1355. Further advances can see the pair extending up to 1.1460, a major static resistance level that will likely contain rallies ahead of FED's meeting next week. 

Support levels: 1.1355 1.1320 1.1280 

Resistance levels: 1.1420 1.1460 1.1500


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