EUR/USD – Weekly Outlook- June 18 2019

EURUSD Outlook & Technical Analysis for Binary Options

Introduction

There’s no better time to swing trade the EURUSD on lower time frames of major Binary Cent platform for a short holding time like now. The pair struggles within a range on the higher time monthly and weekly time frames without showing definitive consecutive closing bars in either a bullish or bearish direction.

Fundamentals

EUR NEWS

ZEW Survey – Economic Sentiment

As a measure of institutional investor sentiment, the ZEW survey shows a difference between shares of optimistic investors and that of pessimistic analysts. Values greater than zero are held bullish for the economy, while those below zero show a bearish outlook for the Euro.

The fundamental indicator has been in decline since April 16 ’19 after it went above the zero level. The recent reading came out -21.1, which is far lesser than the previous at -2.1 on Tuesday, June 18, ’19.

USD NEWS

US Housing Starts 

The US Census Bureau will be releasing data for the Housing Starts, which is a macro indicator which tracks the number of newly constructed family residences. It reveals the expectation of the housing market (US). 

A high expression is held bullish for the US economy, while a low expression confers a negative sentiment.

The historical charts show how it makes a higher low beginning with a low of 1.08Mon February 26 and 1.14M on April 19, with the last reading at 1.235M.

EURUSD Technical

EURUSD: Weekly Chart

EURUSD Analysis - Weekly chart - June 28 2019

Following a failure of bullish supports near last weeks’ opening price on the lower time frames, the EURUSD entered a bearish mode on global forex exchange platforms.

The rejection of critical support and resistance at 1.11838 and 1.12648 sets the price of the EURUSD into a bearish expanding channel. Price broke out of the channel resistance on June 03 ’19 bar; however, only time will tell if it is simply a bull trap setup, after signaling an opposite bearish inside-bar on 10 June ‘19.

EURUSD: Daily Chart

EURUSD Analysis - Daily chart - June 28 2019

A view from the daily time frame revealed swing trading setups, starting with a collapse of bullish support on May 14 (resistance at 1.12636) to an opposite price surge above bearish resistance on May 31 ’19 with set support at 1.11160.

The breakdown of hidden bullish support on June 12 ’19 saw the price tumbling down by about 0.9%. The hidden bullish divergence which appears to be loading at press time was rejected as the price nose-dived.

EURUSD: 4HR Chart

EURUSD Analysis - 4H chart - June 28 2019

An earlier exit of overbought on the 4hour time frame was succeeded by a failure of bullish support on June 12 ’19 04:00, which saw the price drop by approximately 1.2%.

Break of bearish resistance does not always prove to yield profitable trades as seen on June 17 ’19 04:00 with support set at 1.12038 as the pair came out of the oversold area.

At press time, the support collapsed, and a regular bullish divergence pattern appears to be building up.

EURUSD: 1HR Chart

Notice a failure of bullish accumulation on June 13 ’19 22:00 of the 1hour time frame which established resistance at 1.12850. The price could not climb above this level as the resistance proved to stand the test of time.

A collapse of bullish support and breakout of bearish resistance at the ninth and sixteenth hour of June 17 enclosed the pair in a horizontal channel, which later collapsed to sudden increase in selling pressure.

Conclusion

The Euro and USD are significant currencies that make up the most liquid currency pair in the FX market.

At the moment we do not recommend that you hold on to a long or short trade on the EURUSD pair for an extended period the pair is currently consolidating on the longer weekly and monthly charts. 

Better swing trading opportunities are presented on the daily, 4hour, and 1hour time frames. Entering a long or short position on the EURUSD requires a minimum of two cluster signals in the same direction.

Tagged with:

Leave a Comment

All content, design, and layout are Copyright © 2013 - 2016. All Rights Reserved. USBinaryOptions.com is owned and operated by AD Entertainment, a company registered in England / Wales ( United Kingdom ).
About Us - Sitemap - Contact Us - Disclaimer- Terms & Conditions