EURUSD Analysis week 32Fundamental Analysis
EUR/USD gained on Friday after the Greenback was weakened by the poor US Non-Farm Payrolls (NFP) data.
With the US economic data turning sour, investors extended their losses for two days on growing concerns about a broader recession in the domestic US economy, triggering a flight from risk assets and sending equity indices sharply lower.
Next week, the US will see the ISM Manufacturing Purchasing Managers’ Index (PMI) for July on Monday. Euro-wide retail sales for the year ending June are scheduled for release early Tuesday. This will give us a clearer picture of the current stage of the currency market.
Technical Analysis
GBPUSD formed a wide range after the NF release with the nearest support resistance in the range of 1.094 and 1.082. On the H4 timeframe, EMA 34 is looking to surpass EMA 89 to escape the short-term downtrend of the past week. Specifically, it proves that the price line has broken out of the downtrend line. The uptrend may face the highest resistance at 1.098 when the price breaks out of the immediate resistance at 1.094. On the other hand, recovery is necessary in an uptrend. The price trend may retest the broken trend zone around 1.083 after some investors take profit. If the downtrend is established, the strong support zone next week will be 1.075.
Resistance: 1.094-1.098
Support: 1.083-1.075
Trading Signals
BUY EURUSD zone 1.075-1.073 Stoploss 1.071
SELL GBPUSD zone 1.098-1.100 Stoploss 1.102
