Euro Steady after French Election Debate
The forex markets are pretty steady in Asian session today. Commodity currencies remain generally soft on mild risk aversion. Traders are cautious ahead of the meeting between US President Donald Trump and China President Xi Jinping. Yet, they are calm in spite of the news that North Korea fired another ballistic missile. Euro is also staying in range after French presidential election TV debate. Yen pares back some gains after treasury yields stabilized but more upside is still favored. In other markets, both gold and WTI crude oil extended recent rally but momentum is not too strong so far.
EUR/USD Daily Outlook
A temporary low is in place at 1.0635 in EUR/US D with 4 hour MACD staying above signal line. Intraday bias is turned neutral for consolidation. Recovery should be limited by 1.0772 resistance and bring another decline. As noted before, corrective rise from 1.0339 is completed at 1.0905. And more importantly, larger down trend is probably resuming. Below 1.0635 will turn bias back to the downside for 1.0494. Break will confirm this bearish case and target 1.0339 low. However, above 1.0772 will delay this bearish case and bring another rise back to 1.0905 first.
In the bigger picture, as long as 1.1298 key resistance holds, whole down trend from 1.6039 (2008 high) is still expected to continue. Break of 1.0339 low will send EUR/US D through parity to 61.8% projection of 1.3993 to 1.0461 from
1.1298 at 0.9115. However, considering bullish convergence condition in weekly MAC D, break of 1.1298 will indicate term reversal. This would also be supported by sustained trading above 55 week EMA.
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***Information contained in this news letter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision
making, but merely provides information from the market for its clients as additional information being made available as per the events occurring in the financial markets.
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