technical analysis of currencies; A technical and news look at the EUR/USD pair

technical analysis of currencies; The US dollar fell during trading today, Friday, in the European market, to approach towards recording its second loss in the last three days, and this comes at a time when investors are assessing the path of increasing US interest rates during this year, especially after the statements of some Federal Reserve officials, and investors are also awaiting many data Important data about the US economy about the manufacturing and services sectors during the current month of June, in addition to other data on the housing sector during the month of May.

By 11:45 GMT, the dollar index fell towards the level of 97.07 points from the opening level of the trading session at 97.25 points, and achieved its highest level at 97.28 points, while the lowest level was at 96.94 points.

It is noteworthy that the index had closed yesterday's trading, recording an increase of less than 0.1 %, to compensate for part of the losses witnessed in the previous session, which was due to the decline in the US 10-year bond yields.

The decline of the US currency today comes amid investors' assessment of the recent statements by some officials of the Federal Reserve, the “US Central”, regarding the path to increase US interest rates during the current year.

For his part, Patrick Harker, President of the Federal Reserve Bank of Philadelphia, said during an interview with the Financial Times, “It is wise for the US Federal Reserve to stop raising interest rates during the upcoming council meetings.”

As James Pollard, a member of the Federal Reserve, told the newspaper wooThe Street Journal reported that the path of interest rate hike set by US monetary policy makers is unnecessarily aggressive, and advised the Federal Reserve to quickly start reducing its balance sheet sooner rather than later.

Investors are awaiting later today many important data on the US economy, represented in the manufacturing and services sectors data during the month of June, in addition to other data on the housing sector during the month of May.

As for the industries sector, the preliminary reading of the manufacturing purchasing managers’ index is issued. Expectations have indicated to 53.1 points during the current month of June, from 52.7 points in last May. As for the services sector, the preliminary reading of the non-manufacturing purchasing managers’ index is expected to be issued, and it is expected to 53.9 points in this June from 53.6 points last May.

As for the housing sector, it is also scheduled to release new home sales and 599,000 homes are expected in the previous month of May from 569,000 homes in the month of April.

EURUSD analysis

The EUR/USD pair is trading at the level of 1.1196, where the price rebounded towards the upside, targeting the resistance level as shown in the chart.

Currency technical analysis

Currency technical analysis

Trading is now taking place at the highest level of the average moving indicator line, as both Stochastic and MACD indicator show a positive crossover towards the bullish trend on the four-hour time frame.

Therefore, the price is expected to continue rising, targeting 1.1225

 

Mohamed Abdel Khaleq

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