- EUR/USD has been subject to the Chinese headlines once again.
- Daily RSI is neutral while bulls remain capped by 1.1680.
EUR/USD has been subject to the Chinese headlines once again, this time favouring the dollar with the noise that China will be less interventional which lifted USD/CNH from 6.6220-6.6402, EUR/USD slipped up on that from 1.1668 to 1.1636 in Europe and made a fresh low in London at 1.1630.
EUR/USD has since steadied and recovered back to 1.1649 in early NY, somewhat supported by the 100-hr SMA in what is now turning into a dead spot with the US markets out for 4th July holidays, (unlikely we will see much action from here until tomorrow’s NY session, depending on what further nouse we get from China later today for European markets to deal with).
Elsewhere, there were some positives to take away from the European calendar on the data front, including the EZ service PMI beat that came in at 55.2 in June, up from 55.0 prior and compared well against the 55.0 consensuses. The German service sector PMI arrived at 54.5 from 53.9 prior and 53.9 expected.
The week ahead:
Meanwhile, the next scheduled events from the calendar are key, kicking off on Thursday with the ADP private employment, initial jobless claims, ISM non-manufacturing index and the FOMC minutes. Then the market’s attention will turn to the U.S. nonfarm payrolls data and the Chinese tariff threat that kicks on the same day.
EUR/USD levels
Daily RSI is neutral while bulls remain capped by 1.1680. The first target on a break higher comes as 1.1720 ahead of 1.1755 comes as the 23.6 per cent retracement fibo of the 1.2556 to 1.1508 2018 fall guarding the 30-day upper Bollinger band around the familiar 1.1820’s. 1.1855 guards territory to 1.20/1.21. On a break below the 1.16 handle, with the 10-D SMA, (1.1632), guarding the 1.1550’s, 1.1508/10 are the May-Jun lows. 1.15 barriers/ stops come next ahead of 1.1448/1186/0863 that all fall in as the 2016-18 rising Fibo levels. Also, the 200-week moving average is located at 1.1435 while 1.1186/1.0814 come as the 61.8% and 78.6% retracement.
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