Technical Analysis (6/20)

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[videojs mp4=”http://s3.amazonaws.com/fxcom-amazon-s3/2014/06/Technical-Analysis-6_20-EUR_USD-at-Trendline-USD_CAD-Breaks-Support.mp4″]
Technical Analysis (6/20)

Hello my name is Fang Yang, your chief technical analyst at ForexMinute.com. Today is June 20th and you are watching today’s forex video briefing. A main theme in the forex market this week was the USD softening after the FOMC. Let’s see how that manifested in the EUR/USD. Today, strong retail sales and hot inflation data from Canada is boosting the Loonie. Let’s take a look also at the USD/CAD.

EUR/USD rallied this week after putting in a price bottom last week. There was a broad USD weakness after the FOMC event risk, and the EUR/USD popped up from the price bottom, only to stall at 1.3643. As we get into the 6/20 session we see that traders faded the pair down to a rising trendline. A break below 1.3550 should clear the trendline and the moving average in the 4H chart. If the RSI also dips below 40, then we could be looking at a bearish continuation signal, refocusing traders on the 1.35 handle and the 1.3476 low on the year. Above 1.3560, the pair remains bullish in the very short term, with upside toward 1.376 June high.

USD/CAD is blasting through consolidation support today after very hot inflation and retail sales data from Canada. The CPI in May came in at 0.5% on the month, and 2.3% on the year. This was a pick up from April’s reading and also beat most economists’ forecasts. Retail sales also grew 1.1% in April, faster than the 0.1% in March. Economists had forecast a 0.4% growth.

As both inflation and demand data moved higher and beat estimates, USD/CAD fell below its recent consolidation support at 1.0815. The dip is also breaking below the 200 day SMA. The 1.0737 pivot might provide some short term support. But as long as price is below 1.09, there is downside risk toward the low on the year near 1.06, and the 1.0560 support pivot.

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Jonathan Millet is currently the proud CEO of ForexMinute.com, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers. He also holds the position of Binary Options Consultant at ForexMinute.com. Before ForexMinute.com was around, Jonathan was a successful Forex dealer and chief market analyst at Forexyard. He has also worked as a Forex trader. His other specialties include advising financial companies of how to stay head of the competition.