Sentiment on the dollar remained fragile after on Thursday the US Department of Labor said the number of initial applications for benefits for a week of unemployment ending June 11 increased by 13,000 to 277,000.
In addition, the US Commerce Department reported that consumer prices rose 0.2%, while expected to grow by 0.3% in May. In annual terms, consumer prices rose 1.0% last month, which was below forecasts growth of 1.1%.
On Friday the dollar weakened against the major currencies, as the Fed decided to maintain interest rates unchanged and lowered its growth forecasts for interest rates in the next few years.
The EUR/USD rose 0.45% to 1.1277.
I believe that the support is now located at the level of 1.1131, the low of Thursday, and resistance is likely to at the level of 1.1304 - a maximum of Tuesday.
The euro marked a slight increase against the dollar on Friday session. The single currency remained at the levels from the beginning of the week. Short-term expectations remain in favor of the euro and break of resistance at 1.1389 is a possible scenario.
On Monday the US dollar is falling against the euro. The euro against the dollar rose to $ 1.1366 from $ 1.1277 at the end of the previous session, rising by 0.8% against the euro.
EUR/USD experienced a slightly higher volitile session on Monday . Although bairs prevailed, the pair started the week at significantly higher levels than last. The pair made a test of the resistance at 1.1389, after marking intraday high at 1.1381.
The single currency dropped notably against the US dollar on Tuesday. The pair failed to break the resistance at 1.1389 and short-term expectations are still in favor of the dollar. In this case the pair might test the support at 1.1176. The session started at 1.1313 and bearish sentiment prevailed in anticipation of Yellen’s testimory. The depreciation of the euro continued to the end of trade and thus closing price coincided with the lowest value for the day 1.1241.
The euro marked an increase against the US dollar on Wednesday session. The pair recovered from the previous session and again neared the resistance at 1.1389. If the upward trend continues, the pair will test the key level. The seesion started at 1.1241 and closed 53 pips higher. Bulls dominated and and intraday high was pinned at 1.1337.
For second day in a row the euro recorded an increase against the US dollar on Thursday and EUR/USD broke the resistance at 1.1389. If bulls keep pace, a test of 1.1443 is very possible. The session on Thursday started at 1.1294, closed with 91 pips higher and the intraday hight was marked at 1.1420.
On Friday session the single currency tumbled amid volatile trading, after Brexit vote surprised the market participants. The euro depreciated by 2.6% to 1.1086, an intraday high was marked at 1.1427 and the daily low at 1.0911. Friday's bottom turned out to be the lowest point since early March. The pair remains below the moving averages, while RSI is in favor of the bears.
On Monday session EUR/USD remained without significant change amid the suffered losses from Friday. The single currency added only 11 pips to a closing price of 1.1023 after consolidation within the extreme values 1.1083 and 1.0970. The is moving under the moving average, while the index of relative strength remains in favor of the bears.
On Tuesday, the dollar shows a decline against major currencies since the publication of positive US economic growth data for the first quarter contributed to an increase in demand for risky assets. EUR/USD rose 0.46% to 1.1077, rebounding from Friday's three-month low 1.0908.
The third estimate of US GDP in the first quarter was 1.1%, the value was revised from the preliminary 0.8%. Analysts had expected GDP growth of 1.0%.
However, during the first three months of the year growth in consumer spending was revised down to 1.5% from 1.9%. Economists had forecast for an upward revision to 2.0%.
On Tuesday's Asian session, there has been upward correction after yesterday's large-scale sales, as investors seized on news of fiscal incentives as a straw. In addition, we are likely to wait a long period of uncertainty before the formal procedure of Brexit begins.
On Tuesday's Asian session, there has been upward correction after yesterday's large-scale sales, as investors seized on news of fiscal incentives as a straw. In addition, we are likely to wait a long period of uncertainty before the formal procedure of Brexit begins.
Ignored
The first shock after Brexit passed, and now the EUR/USD shows restrained volatility; in fact, I'm surprised that at this stage the pair is trading near 1.1100 and not at 1.0800.
Resistance zone is too wide - 1,1100-1,1200, and perhaps even slightly above 1.1200, but we are still waiting for the downward movement to 1.0800 on concerns about the existential crisis in Europe. From a tactical point of view, since the opening of trading on Monday resistance is near 1.1075/80.
Resistance zone is too wide - 1,1100-1,1200, and perhaps even slightly above 1.1200, but we are still waiting for the downward movement to 1.0800 on concerns about the existential crisis in Europe. From a tactical point of view, since the opening of trading on Monday resistance is near 1.1075/80.
Ignored
In my opinion the support levels are 1.0910, 1.0790 and 1.0710. The resistance is at 1.1090, 1.1185 and 1.1335.
