EUR/USD Weekly Outlook & Technical – June 4 2020

EUR/USD Outlook & Technical Analysis for binary options

Introduction

The pandemic effect shut down businesses all around the world for months because of the destructive nature. However, major economies are planning to reopen business and revive the affected sectors.

This coming week the major economies shall have important meetings and declaring their plans for the following month and how to handle the aftermath of the pandemic. The outcome of all these facts expected is an essential factor for the decision to the BinaryCent broker.

Euro Zone Fundamentals

Since the COVID-19 pandemic crisis began, the ECB has communicated to various investors about their monetary policy, a decision on interest rates, and how they view the economic conditions that contribute to their decision. 

The Euro central bank is planning to boost its stimulus program by 750 billion euros and the addition of 500 billion euro to increase the pandemic emergence purchase program and may extend the duration till the middle of 2021.

If the press release is more hawkish than expected eminently, it is suitable for the currency.

U.S. Fundamentals

As the US governments are opening the businesses again, we may likely see an improvement in employment. The Non-farm employment change coming up this coming week is a vital economic data showing the numbers of people that officially got employment into the system. This information excludes the farm industries.

If the Actual data released is greater than the forecast, it is suitable for the currency, but if it is lower, it isn’t good for the currency.  

Forecast -8000K, previous -20500K.

EUR vs. USD Long-term Objective: Bearish 

EUR/USD Technical Analysis

Monthly Chart

EUR/USD analysis - monthly chart - June 4 2020

Monthly Resistance Levels:  1.25558, 1.21455, 1.15257

Monthly Support Levels:   1.09992, 1.06359 

The EURUSD has been in a downtrend since 2018 when it established its resistance at 1.25558 area. The bears gained 14.25% off the bulls until the support level of 1.06359.

The bullish momentum is showing some sign of strength to the upside after the bears overran the bulls for a lengthy period.

EURUSD found support at 1.06359 strongly rejecting the bears pushes for a while, and the month candle of May is likely to engulf the previous month. This will bring in more buyers, investors to the majors as a sign of healthy recovery for the currency.

Weekly Chart

EUR/USD analysis - weekly chart - June 4 2020

Weekly Resistance Levels:   1.14950, 1.11966, 1.10692

Weekly Support Levels:   1.06639, 1.07270, 1.08969

The bullish engulfing candle of last week was a contributing factor to the bullish rally of EURUSD. The significant momentum could push into the resistance zone of 1.11966 and 1.10692, and the bulls were able to gain a 2.36% increase from the support level of 1.07270.

This new week which will also be a new month, will be an interesting time for the trading brokers’ because they need to determine the direction of EURUSD in the coming days for a better decision. The EURUSD recovered a 4.25% increase from the support zone of 1.06639.

EURUSD Mid-Term Projections: Bearish Bottoming

Daily Chart

EURUSD analysis - daily chart - June 4 2020

Daily Resistance Levels:  1.1490, 1.22211, 1.11452

Daily Support Levels:    1.06559, 1.07706, 1.08356

The EUR/USD currency had been in a range before it could bounce off the support zone of 1.0726 and 1.08356, respectively, of (06 April 2020) after price could not close below that level for some days after multiples of the test of the zone. 

The close of the price for the day and the week is at the 1.11452 resistance level. Trading brokers are interested in the coming trading week because it is a new month and to see if the price can close above the resistance level of 1.2221. 

The bearish accumulation resistance of 13 March 2020 took the EURUSD down for days before it could find its support at the 1.06559 level. The price is approaching the resistance level again, and we shall await the reaction of the price at that zone.

H4 Chart

H4 Resistance Levels: 1.11498, 1.09993, 1.09732

H4 Support Levels:  1.07748, 1.061185, 1.010704 

The bears lost to the bulls when the bulls overran the recent resistance level of EUR/USD. The failed resistance of 20th and 26th May 2020 gave way to another bullish run after the support zone of 25 May 2020 (1.00932 and 1.010704) became the pivot point of another surge to the upside. The bulls could gain 1.38% from the support zone of 1.07748 to the resistant level of 1.11498.

Bullish Scenario:

EURUSD is in an uptrend on the H4 and daily time frames.  You can see from the H4 that the major currencies have established higher highs, and higher lows to confirm an uptrend. 

It is a bullish bias in the market, and we may see more buyers placing orders in the coming days.

Bearish Scenario:

The bears had been in control for a long while in the market. Recently the failure of the resistance level showed that the bears are few in the market, and they have lost momentum on the H4 the frame.

However, of the weekly time frame, the trend of EUR/USD remains bearish until we see a definite reversal pattern to confirm a change in trend.

Conclusion and Weekly Price Objectives

We expect the openings of businesses and recovery plans to be executed by the majors in their plans to stabilize their economy as the new month unfolds. Therefore, investors, financial institutions, and trading brokers are on the lookout for the various news to be released by the various government.

 

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