EURUSD Outlook & Technical Analysis for US Binary Options
- 1 EURUSD Outlook & Technical Analysis for US Binary Options
The EURUSD is one of the most traded currency pairs on BinaryCent binary options platform. An overview from the higher time frames, the pair trades within a descending triangle channel, with an increase in selling pressure at the base of the channel.
Come along as we carry out a deeper scan for price patterns driving the price.
EMU Markit Composite PMI
Published on the 3rd working day of every month by Markit Economics, and based on data from a large number of business executives in the private sector which makes up the services and manufacturing industry, the PMI monthly Composite Report shows a percentage of respondents that report a growth, decline or no difference since the last month.
A value above 50 is considered positive for the EUR; however, less than 50 is deemed to be bearish.
The actual and revised value was released as 51.6, an amount higher than the consensus, which was at 51.5.
US NFP (Nonfarm Payrolls)
Here is a fundamental indicator that shows the number of new jobs created in the past month, excluding agriculture-based businesses. Published by the US Department of Labor, the NFP is determined by active reviews in the upcoming months, which triggers volatility in the forex exchange markets.
The NFP reading released on Friday, June 07, came out at 75K, a value lower than the previous, and consensus at 224K and 185K respectively, forcing the exchange rate to skyrocket above a recent bearish divergence setup on the 4hour chart.
EURUSD: Monthly Chart
We notice a rise in demand for the USD starting from a bearish accumulation pattern on June 01 ’18, which continued with bearish pressure and rejection of demand on February, March and May 2019.
The recent selling pressure sets resistance at 1.13239, and 1.12648 respectively, where a price close above these levels on the monthly time frame shows confirmed increase in demand for the EURO.
EURUSD: Weekly Chart
The above weekly chart better illustrates the descending triangle pattern in the intro. Notice the regular bullish and hidden bearish divergence setups that are at play in the buildup of the triangle pattern.
Many rejections of buying and selling support/resistance levels are revealed on December 24, 2018; February 04, 2019; March 04, 2019 and May 13, 2019.
An increase in buying pressure on June 03 ’19 establish support at 1.11071 and serves as confirmation for a hidden bullish divergence setup.
EURUSD: Daily Chart
On the daily time frame, the demand for the EUR dried out following a breakdown of the bullish support on April 16 ’19 and setting resistance at 1.13239.
The breakout of bearish pressure on May 31 ’19 ignited the bullish campaign and consequently an increased rate of demand for the EUR.
EURUSD: 4HR Chart
Coming lower to the 4hour time frame, the EURUSD signaled a breakout of bearish resistance on May 31 which confirmed a hidden bullish divergence (MACD) and saw the price increased by 1.59%.
The regular bearish divergence signaled on June 06 ’19 16:00 saw the price declined by a meager 0.2% before shooting back to the upside above the resistance level of the bearish divergence setup.
We may be looking at a long term bottoming of the EURUSD from the weekly time horizon as the pair sets strong long term support at 1.11071. The projected negative reading of the NFP also led to an earlier increase in strength of major currencies such as the Canadian Dollar and the Japanese yen on June 06, 2019.