EUR/USD Daily Technical Analysis

On Wednesday session the single currency ticked a slight increase against the US dollar. The session started at 1.1139 and finished only 15 pips higher. The pair was trading within the range 1.1128 and 1.1166. Until euro bears steer the direction from the beginning of the month, we might witness test of the support located at 1.1100.

On Friday session the euro marked a negative session against the US dollar, pressured by Yellen’s speech. The euro lost 80 pips and the bottom for the day was struck shortly before the end of the session at 1.1110. EUR/USD started the week with relatively shaky trading and hovering around 1.11. As no major macro news is expected today, the pair will be seen in a tight range.

Key levels to watch for today:
Support: 1.1069; 1.0998;
Resistance: 1.1226; 1.1291.

The US dollar traded near its strongest levels in two months thanks to growing expectations of an impending increase in US interest rates. The greenback are quite sought after Friday's speech by Federal Reserve Chairman Janet Jelen that an increase in interest rates in the coming months would be appropriate if the economy and the labor market continue to improve.

On Tuesday, the dollar continues to trade at two-month highs against other major currencies, as expectations of higher interest rates in the US next month, continues to support the national currency, while investors awaited the release of US statistics later in the session. The EUR/USD almost unchanged at 1.1136, compared with the 10-week low of 1.1097 on Monday.

The dollar rose slightly against a basket of major currencies on Tuesday after US economic data did not support expectations of an increase of the interest rate the Fed in June or July. The dollar index by 15.29 GMT+1 was trading at 95.829, down from a two-month peak of 95.968 reached on Friday. The euro rose to a session high of $ 1.1173, moving away from more than 10-weeks minimum set on Friday ($1.1096), but then fell to $ 1.1130.

US macro updates dragged EUR/USD to daily low at 1.1132 and the daily high couldn’t move above 1.1171. The pair is still under pressure around the support at 1.1100 (200-day EMA).

The euro recorded a volatile session against the dollar on Tuesday. Although the pair varied widely in the end opening price session was similar to the closing price, respectively, 1.1136 and 1.1131. Bulls prevailed in the early hours and the peak for the day was marked at 1.1172. Short-term expectations remain in favour of the euro. Support is seen at 1.1069 and 1.0998. Resistance is located at 1.1226, followed by 1.1291.

Euro/Dollar attempted to rise higher yesterday, topped at 1.1173 but dropped down after, it closed lower at 1.1130 and hit 1.1113 earlier this morning. Trading signals remain down for testing the lower line of the bullish channel and 1.1100 - 1.1050 area. On the upside, key intraday resistance remains at 1.1180 (200 day EMA). A clear break and daily close above this level could trigger further bullish pressure testing 1.1250 or higher. On the downside, a clear break and daily close below 1.1050 would reactivate its bearish pattern with targets near 1.0800.

The euro fell against the US dollar on Tuesday to 1.1132, shedding 0.06%. Support is now at around 1.1096 - Monday's low, and resistance is likely to make the level of 1.1218 - maximum of Thursday.

Today, the dollar fluctuates slightly below the maximum of two months to a basket of major currencies after a series of mixed economic data from the United States a little tempered expectations Fed rate to rise in the near future. The euro weakened 0.1 percent to $ 1.1119, staying above the minimum of 2.5 months set on Monday.

On Wednesday, the dollar is lower against other major currencies as well as mixed US economic reports that were released in the previous session, continue to put pressure on the dollar. Ambiguous data prompted investors to slightly revise expectations for timing the next Fed rate increase. The EUR/USD rose 0.24% to 1.1159.

Ahead of the US data on Wednesday the euro started to move higher and nearing 1.12 level. The pair coudn’t break the key level at 1.1226, but should the momentum continue, the resistance could be overcome soon. Support is now located at 1.1069, 1.0998.

CIBC: It is expected EUR/USD to fall to 1.09 in September.

Weak statistics on employment for April (Nonfarm Payrolls) encourages traders to postpone the expectations of another Fed rate increase. The Labor Department said that in May, the US non-farm sector, was created only 38K. New jobs were much less than the expected 164K. This is the worst value since September 2010. In result, EUR/USD rose with nearly 200 pips.

The euro rose against the dollar on Friday. EUR/USD closed the week at 1.1366, gaining 1.91%. The support is now located at the level of 1.1096, Monday's low, and resistance is likely to make the level of 1.1374 - a maximum of Friday's trading session.

On Friday the euro marked its strongest session against the dollar for nearly six months, after the data from the US labor market disappointed markets. The euro rose more than 200 pips to a closing price of 1.1355 and thereby reported first positive week for the last five. Dispelling expectations of raising interest rates by the Fed in June continues to support the single currency. Technically the bulls are favored and immediate support is located at 1.1330.

Following Yellen’s speech US dollar remained stuck around 3-week low. EUR/USD fell 0.08% and was trading lower. The intraday low was reached at 1.325.

Yesterday the euro remained unchanged against the dollar at a level of 1.1352. The pair failed to overcome the psychological resistance at 1.1400, while the euro found support at 1.1326. Technically the bulls will dominate. Support is located at 1.330 and resistance at 1.1465.

The dollar slowed its decline after the statement of Janet Yellen. Fed chairman said that currently central bank policy is appropriate, but over time interest rates will rise. Yellen also said that it expects inflation to move towards the 2% target over the next few years. For NFP last week, Fed Chairman said that they were "disappointing".