EUR/USD intraday bearish channel in play

It was a relatively uneventful trading day in the forex market. We saw the largest move in the EUR/USD which declined 31 pips to 1.122.

Charts (4)

The US Dollar was bullish against most of its major pairs on Thursday with the exception of the NZD and AUD. 

On the economic data front, Wholesale Inventories fell 1.2% on month in the May preliminary reading (+0.4% expected), from a revised +0.2% in the April final reading, a low last seen in 2009. Durable Goods orders jumped 15.8% on month in the May preliminary reading (+10.5% expected), from a revised -18.1% in the April final reading, marking a high last reached in 2014. GDP remained at -5.0% in the first quarter third reading (as expected), in line with the first quarter second reading. Initial Jobless Claims decreased to 1,480K for the week ending June 20th (1,320K expected), from a revised 1,540K in the week before. Continuing Claims slid to 19,522K for the week ending June 13th (20,000K expected), from a revised 20,289K in the previous week. 

On Friday, Personal Income for May is expected to fall 6.0% on month, from +10.5% in April. Personal Spending for May is expected to increase 9.0% on month, from -13.6% in April. Finally, the University of Michigan's Consumer Sentiment index for the June final reading is expected to rise to 79.2 on month, from 78.9 in the June preliminary reading.                                                                                                                             
The Euro was bearish against all of its major pairs. In Europe, Germany's GfK Consumer Confidence Index for July rose from -18.6 to -9.6 (-12.0 expected). 

The Australian dollar was bullish against most of its major pairs with the exception of the NZD. 

It was a relatively uneventful trading day in the forex market. We saw the largest move in the EUR/USD which declined 31 pips to 1.122. The pair remains inside a bearish trend channel capped bu a declining trend line. Look for further pressure down towards intraday lows at 1.119 and 1.11675 in extension. A rebound above 1.124 could signal the end of the bearish trend an a reversal towards 1.2815. 



Source: GAIN Capital, TradingView

Happy trading.

More from Forex

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.