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EURUSD: dollar on the attack as trading opens in Europe

Previous:

On Thursday the 7th of June, trading on the euro closed up against the greenback. The pair continued on its upwards trajectory, emboldened by the announcement from Peter Praet that the ECB is set to discuss its bond-buying program next week, and set a date for its termination.

With the support of the cross pairs, the euro jumped to 1.1839. The EURJPY pair has hit a new two-week high of 130.27. Buyers, however, didn’t manage to maintain their position. A declining pound along with a correction on the dollar brought the euro back down to 1.1796.

US data:

Initial jobless claims (1 Jun): 222,000 (forecast: 225,000, previous: 223,000).

Day’s news (GMT 3):

  • 09:45 France: industrial output (Apr).
  • 15:15 Canada: housing starts (May).
  • 15:30 Canada: unemployment rate (May), net change in employment (May), capacity utilisation (Q1).
  • 17:00 USA: wholesale inventories (Apr).
  • 20:00 USA: Baker Hughes US oil rig count.

Current situation:

My expectations were proven wrong yesterday. Optimism among euro bulls over QE caused me to lose some of my deposit. The rate came out of the reversal zone between the 112th and 135th degrees to reach 1.1838.

Thursday’s candlestick has a bullish body and a long wick. The EURJPY pair has made a pin bar model, which has been forming since this morning. This is the only euro cross that is currently trading down.

I conducted an analysis this morning and concluded that on the back of the rising crosses, the euro will recover to 1.1830 before dropping. The dollar has opened up in today’s European session and is currently trading up against all the majors. The EURUSD pair has dropped to 1.1771.

I’ve decided not to upload a chart today because the high level of activity from sellers at the beginning of the European session has shifted the 45th degree downwards. Analysing our pair’s growth prospects would require recalculating all the Gann levels.

On the hourly timeframe, an uptrend has formed from 1.1510. On the current hour, the trend line runs through 1.1730. Considering the dynamics of the euro crosses, I think that the bulls will test the bears’ nerves with some sharp fluctuations.

Trader attention today will be focused on economic data from the UK and Canada, as well as the G7 summit.



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