Previous:
Trading on the Euro closed down on Thursday, with a breakout of the trend line ending the 4-day rally. The pair fell to 1.1076 but sellers weren’t able to close the day below 1.1082 (the opening price of the candlestick on the 17th of May).
Donald Trump is once again under siege, as he has been since entering the White House. Every week, its walls are shaken by a new scandal. Since the dismissal of FBI director James Comey, Trump has been threatened with impeachment and even prison. Political tensions slightly subsided when the former FBI head appeared to deny that Trump had tried to halt the investigation into his former advisor’s ties with Russian officials.
Market expectations:
In Asia, the Euro is trading at 1.112. Friday’s economic calendar is relatively empty but there are some planned speeches from members of the ECB and the US Federal Reserve. Euro-bears have consolidated under the balance line, so I’m going to take a risk and say that the correctional movement will continue to 1.1060.
Day’s news (GMT+3):
EURUSD rate on the hourly. Source: TradingView
Intraday forecast: low: 1.1060, high: 1.1126/30, close: 1.1070.
On Thursday, the Euro/dollar pair closed down. Sellers didn’t manage to close the day below 1.1082 and so missed out on forming a bearish engulfing pattern. The dust has finally settled after a 4-day rally. The trend line and balance line have both been broken through. The price fell as a result of a high volume of orders, indicating a mass closing of long positions that had been opened by traders from the 12th of May. In the second half of the day, gold and yen both depreciated, while US bond yields grew.