Looking at the euro currency (EUR) on the above daily MT 4 chart, the benchmark EUR/USD Forex market continues to look in favor of the sentiment linked single currency from the Eurozone. The world’s most liquid currency exchange rate, however, is showing some signs of running out of steam and bullish momentum.
The euro currency finished the week below the key level in play at 1.19 but is still above the downside barrier in play at 1.1740 and above the short term twenty (20) day moving average (DMA). The economic calendar, on Monday, is rather quiet as the new trade week kicks off.
The European Union will release their monthly Sentix consumer confidence gauge and the United States is publishing monthly JOLTS jobs openings data. The United Kingdom will release their monthly BRC retail sales data.
With little economic calendar on the calendar, Forex traders will be watching geopolitical events in Lebanon and what is happening between the United States and China closely. There is also news of further coronavirus fiscal stimulus via an executive order signed by President Donald Trump after talks collapse between the two main political parties stateside.
Daily Euro Currency Technical Analysis (EUR/USD)
Looking at price action on the above MT 4 chart, the euro currency, as mentioned above is still above that twenty day moving average as well as the one hundred and two hundred (100,200) day moving averages. The 100 DMA has crossed above the 200 DMA, but the technical indicators are still within overbought territory which signals that that the euro could correct lower against the U.S. dollar.
With that said, the first layer of technical support comes into play at 1.1636/35. A daily close below this first layer of support could bring the greenback bulls back into this Forex market. If this happens, then the first downside barrier to monitor would come into play at the 10 June high price point at 1.1422.
On the upside, a daily close above 1.19 would bring the next upside barrier would then come into play at 1.1970. A sustained close above this level beings the key level of 1.20 into play. The next upside barrier would then lines up 1.2022/23.