Currency Analyst since 2010

EUR/USD: daily update

EUR/USD formed a hammer yesterday closing above support at $1.3350. After the initial dip today the bulls are trying to push the pair higher. Yet, there’s a band of resistance at $1.3365/80. If euro breaks higher, it will be able to test $1.3410/27 and probably $1.3450. Further resistance is at $1.3488 and $1.3520. On the downside, support is at $1.3347, $1.3335 and the most important one, at $1.3300.  

SEB Bank: “Yesterday’s attempt lower was responded to in the expected support area. Players face a recent both-sides rejection when they come in today and the outcome is obscured.”

Commerzbank: “There’s a negative divergence on the daily MACD, so a top may be formed at $1.3450. Only a drop through the next lower $1.3208/1.3188 support area will mean that a significant top has indeed been made.” The pair may challenge highs and break higher (to $1.3520 and $1.3711), but the bank doesn’t consider such scenario very likely.

Bank of Tokyo Mitsubishi UFJ is neutral EUR/USD and sees spot ranging in the $1.3200/1.3500 region ahead.

German economic growth in Q2 was confirmed at 0.7%. There is little left of the calendar for the pair today except US new home sales at 14:00 GMT. The reading may decline after its spectacular increase last month.

Chart. H4 EUR/USD

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