USD under pressure against the EUR

The Fed announces U.S. corporate bond purchases, USD sinks.

Uptrend 2

The US Dollar was bearish against all of its major pairs on Monday. 

On the economic data front, Empire Manufacturing spiked to -0.2 on month in June (-29.6 expected), from -48.5 in May. 

On Tuesday, Retail Sales Advance for May is expected to rise 8.0% on month, from -16.4% in April. Finally, Industrial Production for May is expected to increase 3.0% on month, from -11.2% in May.                                                                                                           

The Euro was bullish against most of its major pairs with the exception of the AUD. In Europe, the European Commission has reported April trade balance at 1.2 billion euros surplus (vs 25.5 billion euros surplus in March).

The Australian dollar was bullish against all of its major pairs. 

One of the most active currency pairs on Monday was The EUR/USD which jumped appx. 65 pips to 1.1321. The pair broke above a rectangle consolidation after breaking its bearish trend channel to the upside on a 1-hr chart. As long as 1.1275 can hold as support, look towards a test of 1.1395 resistance. A break below 1.1275 could call for a test of 1.122 intraday lows. 

Source: GAIN Capital, TradingView

Happy trading.

Build your confidence risk free

More from Forex

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.