The US dollar index, measures the value of the US dollar against a basket of foreign currencies, remained on the backfoot Tuesday, aided by less-than-stellar US consumer confidence, with the unit poised to continue declining until reaching daily support at 98.45.
Europe’s shared currency kicked off the week lower against the buck, pencilling in a decisive opening gap. Early Europe witnessed a run to 1.0805, before spiking to highs of 1.0841 amid a modestly better-than-expected German IFO print.
After toppling the 2016 yearly opening level at 1.0873, channel support, taken from the low 1.1109, welcomed a test last week and held price higher. Producing a hammer candlestick formation (a bullish signal at troughs), the unit now faces 1.0873 as potential resistance this week.
Key risk events today: Eurozone Flash Manufacturing/Services PMIs; UK Flash Manufacturing PMI and Flash Services PMI; Canada Core Retail Sales m/m and Retail Sales m/m; US Flash Manufacturing PMI. (Previous analysis as well as outside sources – italics). EUR/USD: EUR/USD concluded Thursday pretty much unchanged, but did manage to chalk up a bearish outside formation … Continue reading Friday 21st February: Technical Outlook and Review.
EUR/USD continues to echo a bearish stance, capped at the underside of the 1.08 handle on the H4 timeframe. The US dollar index continued marching higher Wednesday, scoring highs at 99.71, levels not seen since May 2017.
