EUR/USD Recovery Facing Important Resistance03 June, 2019 by Aayush Jindal in Market Analysis
- The Euro found support near 1.1115 and recently recovered against the US Dollar.
- EUR/USD is facing a strong resistance near 1.1190 and a bearish trend line on the 4-hours chart.
- The US Personal Income increased 0.5% in April 2019, more than the 0.3% forecast.
- The Euro Zone Manufacturing PMI in May 2019 is likely to remain at 47.7.
EURUSD Technical Analysis
This past week, there was a fresh decline in EUR/USD from the 1.1215 swing high. The Euro traded below the 1.1150 support and tested the 1.1115 level against the US Dollar before it started an upside correction.
Looking at the 4-hours chart, the pair started a decent recovery from the 1.1116 swing low. It traded above the 1.1140 and 1.1150 levels.
There was a break above the 50% Fib retracement level of the downward move from the 1.1215 high to 1.1116 swing low. However, there are many hurdles for the bulls waiting near the 1.1180 and 1.1190 levels.
There is also a bearish trend line formed on the same chart with current resistance near 1.1190. Besides, the 100 simple moving average (red, 4-hours) is also near the trend line.
The next key resistance is near the 1.1200 level and the 200 simple moving average (green, 4-hours). Therefore, a successful close above the 1.1200 level is must for further gains.
If the pair fails to move above 1.1190 or 1.1200, it could start a fresh decline in the coming sessions. An initial support is near 1.1140, below which EUR/USD might revisit 1.1116.
Economic Releases to Watch Today
- Germany’s Manufacturing PMI for May 2019 – Forecast 44.3, versus 44.3 previous.
- Euro Zone Manufacturing PMI May 2019 – Forecast 47.7, versus 47.7 previous.
- UK Manufacturing PMI for May 2019 – Forecast 52.4, versus 53.1 previous.
- US Manufacturing PMI for May 2019 – Forecast 50.6, versus 50.6 previous.
- US ISM Manufacturing Index for May 2019 – Forecast 53.3, versus 52.8 previous.