After toppling the 2016 yearly opening level at 1.0873, channel support, taken from the low 1.1109, welcomed a test last week and held price higher. Producing a hammer candlestick formation (a bullish signal at troughs), the unit now faces 1.0873 as potential resistance this week.
Key risk events today: Eurozone Flash Manufacturing/Services PMIs; UK Flash Manufacturing PMI and Flash Services PMI; Canada Core Retail Sales m/m and Retail Sales m/m; US Flash Manufacturing PMI. (Previous analysis as well as outside sources – italics). EUR/USD: EUR/USD concluded Thursday pretty much unchanged, but did manage to chalk up a bearish outside formation … Continue reading Friday 21st February: Technical Outlook and Review.
EUR/USD continues to echo a bearish stance, capped at the underside of the 1.08 handle on the H4 timeframe. The US dollar index continued marching higher Wednesday, scoring highs at 99.71, levels not seen since May 2017.
Europe’s shared currency tumbled for a fifth successive session against the buck Tuesday, pulled lower on weak German ZEW Economic Sentiment for February and the Federal Reserve Bank of New York’s Empire State Manufacturing Index also rising sharply in February.
After refreshing multi-year lows at 1.0827 Friday, EUR/USD struggled to find direction Monday as US banks closed in observance of Presidents’ Day – confined within a tight range between 1.0851/1.0829.
