EUR/USD CONVERSATION POINTS
Retail sales in euros (MAY) – ACT: 0.2%; SI: -0.4%Recession fears dominate after US 2H10 yield curve inversions.
FUNDAMENTAL CONTEXT OF THE EURO
The euro did little in the way of recovery after better-than-expected retail sales data for May, partly due to the print being the lowest since August 2021. Also , with the current recessionary context trapping the markets after the 2h10 US Treasury yield curve inverted, the markets remain “buffered”.
ECONOMIC CALENDAR EUR/USD
Source: DailyFX Economic Calendar
TECHNICAL ANALYSIS
EUR/USD DAILY CHART
Picture made by Warren VenketasGI
EUR/USD has now fallen to 20-year lows below the 2017 low at 1.0340 yesterday, and now looking towards the July 2002 swing high 1.0210 after the announcement.
As most markets are overextended at the moment, including EUR/USD, we may see support hold at 1.0210 and potentially a short-term pullback to 1.0340.
Resistance levels:
Support levels:
1.0210 (2002 swing high)1.0064
IG CUSTOMER SENTIMENT DATA: MIXED
IGCS shows that there are currently retail traders LONG activated EUR/USDwith 75% of traders currently holding long positions (as of this writing). At DailyFX we normally take a contrary view to the crowd sentiment, but due to recent changes in long and short positioning, we come to a cautious short-term disposition.
Contact and follow Warren on Twitter: @WVenketas
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