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    Technical analysis of EUR/USD for June 04, 2015

    The euro rose 1.0% against USD, 1.3% against JPY, 1.5% against CAD, 1.2% against GBP, 1% against AUD, and 1.5% against NZD. The ECB chief Draghi's speech generates positive signals on the euro.

    The eurozone inflation report initially supported the pair; the ECB supported the euro later. Yesterday, Italy, Spain, and France produced positive readings for services PMI, but the German services PMI continued to slow down. The Spanish services sector employment rose at the fastest pace since September 2007. Services firms operating in Italy recorded a rise in business activity in May for the fourth time in the past five months. French services sector activity rose for the fourth successive month. Growth in the Germany services sector activity was the slowest in 2015 so far.

    Early on Thursday, Greek Prime Minister Alexis Tsipras said Greece is close to an agreement with its creditors after talks with eurozone officials.

    In recent weeks, the euro turned bullish across the relevant pairs. The euro turned bullish against the greenback in March, followed by JPY,NZD, and AUD in April and CAD in May.

    EUR/USD: At Wednesday's session, the pair managed to close above 100Dema. In the H1 and four-hour charts, higher lows and higher highs formation is expanding. The pair managed to get above 20Dsma. These factors added further bullish views. The pair changed its direction with the support at 1.0820 aiming to 1.1450 initially. At Monday's session, the pair made a double bottom at 1.0890 moving higher. Today, the pair opened on a bearish note after two bullish days. Intraday buying is available above 1.1290 with targets at 1.1320, 1.1350, and 1.1380. Intraday support is found at 1.1240 and 1.1200. Today's trade is likely to depend on US economic data. Bearish trade is available below 1.1190 with targets at 1.1130, 1.1100, and 1.1070. The weekly support is found at 1.1060 and 1.0980. Until the pair holds 1.0980, a bullish view remains in play. In the hourly chart, negative divergence is observed. Before further movement up, we expect a mild healthy correction towards 1.1100, 1.1050, and even 1.1000.





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