EUR/USD – Weekly Outlook- June 27 2019

EURUSD Outlook & Technical Analysis for US Binary Options

Introduction

The EURUSD is exiting a three months bearish accumulation phase as seen on major US binary options broker platforms, following a strong optimism in the Euro economy.

Let’s take a look at the technical and fundamental indicators driving the price of the EURUSD.

Fundamentals

EURO NEWS

Euro Business Climate

The European Commission will on Thursday, 27 June, publish the leading macroeconomic indicator which estimates the general economic situation within the Euro area.

An excellent survey reading shows that the global economic cycle in the Eurozone is positive. Lower readings, on the other hand, shows unfavorable business climate.

The survey as plotted on an annual basis has been in decline since the last peak 1.66% on 08 January ’18, with the previous month 28 May ’19 reading at 0.3%.

USD NEWS

GDP Annualized

The annualized GDP indicates the monetary value of goods and services generated in the US within a particular time frame, showing the rate of increase or decline of a nation’s economy.

Since 28 April ’16 (0.5%), the US GDP has been forming higher lows with the most recent higher low at 2.2% on 28 March ’19.The last reading was at 3.1% on 30 May ’19. A higher value is considered bullish for the USD while a low reading is bearish.

EURUSD Technical

EUR/USD: Monthly Chart

EURUSD Outlook - Monthly Chart - June 27 2019

A bird’s eye view from the monthly time frame reveals a strong positive correlation between the Euro business climate macroeconomic indicator and the price chart of the EURUSD. 

Notice how the price crash below hidden bullish support on 02 April ’18, and established resistance at 1.25560. As the bearish trend progressed, the price chart continued to signal hidden selling pressure resistance at 1.18522, and 1.14886 on 01 June ’18 and 01 February ’19.

With the EU business climate approaching the zero level and the EUR and USD, which are major currencies on Forex exchange broker platforms currently show the weakness of selling resistance in the current month, we should look forward to an increase in demand for the EURUSD.

EURUSD: Weekly Chart

EURUSD Outlook - Weekly Chart - June 27 2019

Here on the weekly time frame, EURUSD exchange rate transitions into regular bullish divergence on 12 Nov ’18 and 03 Jun ’19, with established support levels at 1.12154, & 1.11071.

The bears refused to loosen their grip on the demand for the USD as they force the price down a bit for roughly twenty-one weeks following a failure of buying pressure.

EURUSD: Daily Chart

EURUSD Outlook - Daily Chart - June 27 2019

The daily chart is not left out on the buying pressure from regular bullish and hidden bullish divergence patterns as observed on the weekly chart.

On 24 and 31 May ’19, the bullish divergence setup in combination with a break of selling resistance started the early upbeat swing for about 1.61% rise in the exchange rate.

A buildup of the second bullish swing on the daily time frame will be further explained on the 4hour time frame.

EURUSD: 4HR Chart

The regular bullish divergence pattern signaled in combination with an increase in buying power on 18 June ’19 08:00 started the upbeat swing mentioned on the daily chart which increased for about 1.85% from the b

uying pressure close.

A bull trap confirmed on 25 June ’19 00:00 lead to the RSI exiting the overbought level.

Conclusion

As the month of June come to an end, the Euro starts to show a stable growth on the weekly time frame, and a closing price above the 1.13239 resistance on the monthly chart will confirm the long-awaited price reversal to the upside.

We should be on a lookout for a correction of the rally if the bullish expectation on the monthly chart holds.

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