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Expected Continuation of Upward Correction

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The euro/dollar on Tuesday closed slightly up. Support for the pair came from a weakening dollar. Traders are continuing to analyse the consequences of Brexit. The euro closed at 1.1063 where it still sits trading.

Market Expectations:

Market participants are waiting for news from the EU leaders summit taking place in Brussels. News is slow and what there is isn’t enough to have a real effect on the market. Whilst there’s no decision made regarding the UK, I’ll risk saying the euro will again strengthen, this time to 1.1123.

Day’s News (EET):

  • 9:00, German consumer confidence from Gfk for June. UK housing price index for June from Nationwide;
  • 11:30, UK changes in credit financing for individuals in May;
  • 15:30, US base CPI according to personal consumption expenditure in May, consumer expenditure in May and consumer incomes;
  • 17:00, US changes in uncompleted housing sales in May;
  • 17:30, US oil reserves for the week ending 26th June;
  • 18:00, German preliminary CPI for June;
  • 22:30, US bank stress test results.

Technical Analysis:

Intraday forecast: minimum: 1.1049 (current Asian), maximum: 1.1123, close: 1.1095.

Euro/dollar rate on the hourly. Source: TradingView

The euro/dollar has restored to the 112th degree and from there a downward correction followed. Above the balance line a triangle in a triangle is forming. I expect the price to exit upwards from there. I fully understand that the fluctuations up and down will persist whilst the situation with the UK still hangs in the balance. However, I reckon we’re to see an upwards movement of the euro/dollar as part of a correction after Friday, 24th June’s fall. My forecast for growth is to cancel with a close of the hourly candle below 1.1030.

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29 June, 09:20 (GMT+3)
Oil and Euro on the Rise

Attention:

Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial markets. Alpari bears no responsibility whatsoever for any possible losses (or other forms of damage), whether direct or indirect, which may occur in case of using material published in the review.

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