EUR/USD Under Pressure Ahead of US Core Durable Goods

EUR/USD Under Pressure Ahead of US Core Durable Goods

EUR/USD digested Friday's gains as US dollar perused bullish forces and continued the strong tone after Trump speech on 24th, with tax reformation as a main subject. US index surged $0.5 and clocked a high 100.63, currently trading 101.12 intraday. Analysts at Namoura expressed concerns about what's coming ahead of EU and French election is the main frame that revolves euro levels.

Quote:

"Higher polling for Marine Le Pen justifies the markets’ recent fears, but our base case remains for her to lose the election. If fears escalate, we think 0.97 will be a key level in EUR/USD (-20% deviation from PPP), and the level the euro would settle around in the event of a Le Pen victory. If fears of a Le Pen victory subside, as we expect, then we see a very positive picture for the euro with the possibility of ECB tapering later in the year.”

Fundamentals :

1- EUR -M3 Money Supply y/y today at 9:00 AM GMT.

1- USD - Core durable goods order today at 1:30 PM GMT.

Technical levels to watch:

Trend: Bearish Sideways.

Resistance levels : R1 1.0587, R2 1.0628, R3 1.0658

Support levels : S1 1.0552, S2 1.0519 , S3 1.0492

Remark : The market remains bearish trend. Closing below S1 projects further declines with selloffs and wash towards to S2 level. Closing above R3 is needed for trend reversal. Look forward for US data today which will impact US index levels.

Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.