TenkoFX - Analytics

    TenkoFX

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    EUR/USD ranging around 100-DMA Haresh Menghani

    Although, the EUR/USD pair has held on to its Friday's gains, the pair has barely moved in last few hours and has remained struck above 1.1250 level.On Thursday, the pair initially dropped to 1.1130, its lowest level since May 1st, but managed to recovery swiftly above 1.1200 handle and extended the recovery trend on Friday. However, the bulls seem to have exhausted after the recent spurt in volatility as the pair has failed to build on to its momentum despite of broadly weakening US Dollar. On economic data front, Euro-zone current account surplus widened to 36.2 billion Euros during April. From the US, building permits and housing starts data for the month of May were mostly in-line with expectations.Going into the weekend, traders might be reluctant to carry any positional bets ahead of next week's crucial 'Brexit' referendum.Technical outlookValeria Bednarik, Chief Analyst at FXStreet notes, "Technically, the 4 hours chart present a modest bullish tone, given that the price is above its 20 SMA that anyway maintains a bearish slope, whilst the technical indicators head modestly higher above their mid-lines. The pair has managed to advance up to 1.1271 so far today, with a break above it favoring a retest of the 1.1300 region. Further gains beyond 1.1310, however, are required to confirm a stronger upward move towards the 1.1350 region.""The immediate support is the 23.6% retracement of May's decline at 1.1220, with a slide below it probably favoring a decline down to 1.1185."


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