Euro Trades Higher on US Dollar WeaknessPosted 06/07/2018 9:47AM CT |
The US dollar traded down Wednesday to its lowest point since May 22, continuing its trend lower since May 29’s high of 94.500. With weakness expected to continue from a consensus of 225k initial jobless claims for the week of June 2, a slight increase from the prior week’s number of 221k and continued negative pressure from US trade negotiations. The bears seem to be in control here with plenty of backing to remain pushing the market lower. In the September US dollar support comes in at 92.580 and 92.075 with resistance at 93.430 and 93.855.
US Dollar Jun ’18 Daily Chart
The euro closed higher Wednesday but traded off the highs of the day after failing at resistance of 1.1805. Even with a decline in German factory orders and Italian political issues still a concern, the euro continued the short-term trend higher with the weakness in the US dollar. With this recent move higher momentum studies are approaching overbought levels which could accelerate a turn to the downside. The bulls are wanting to see continued weakness in the US dollar as well as an end to the ECB’s current stimulus program in order to see the trend continue higher. Support comes in at 1.1741 with resistance at 1.1865.
Euro Jun ’18 Daily Chart