Technical Indicators Resistance & Support Levels The EUR/USD needs to avoid the $1.0841 pivot to target the First Major Resistance Level (R1) at
Technical Indicators
Resistance & Support Levels
The EUR/USD needs to avoid the $1.0841 pivot to target the First Major Resistance Level (R1) at $1.0872 and the Wednesday high of $1.08736. A return to $1.0850 would signal a bullish session. However, the EUR/USD needs progress toward raising the US debt ceiling, central bank commentary, and US economic indicators to support a breakout session.
In the case of an extended rally, the bulls will likely test the Second Major Resistance Level (R2) at $1.0904. The Third Major Resistance Level (R3) sits at $1.0968.
A fall through the pivot would bring the First Major Support Level (S1) at $1.0808 into play. However, barring another risk-off-fueled sell-off, the EUR/USD pair should avoid sub-$1.0750. The Second Major Support Level (S2) at $1.0777 should limit the downside. The Third Major Support Level (S3) sits at $1.0714.
Looking at the EMAs and the 4-hourly chart, the EMAs sent bearish signals. The EUR/USD sits below the 50-day EMA ($1.09075). The 50-day EMA slid back from the 200-day EMA, with the 100-day EMA closing in on the 200-day EMA, delivering bearish signals.
A move through R1 ($1.0872) would give the bulls a run at R2 ($1.0904) and 50-day EMA ($1.09075). However, failure to move through the 50-day EMA ($1.09075) would leave S1 ($1.0808) in view. A move through the 50-day EMA would send a bullish signal.
The US Session
Looking ahead to the US session, it is a relatively busy day on the US economic calendar. US jobless claims and the Philly Fed Manufacturing Index and sub-components will draw interest.
An unexpected slide in the Philly Fed Manufacturing Index would fuel recessionary fears. However, the devil will likely be in the details. Investors should consider the Philly Fed Prices, New Orders, and Employment sub-components.
While the economic calendar is busier, the markets should monitor FOMC commentary. Fed members Jefferson, Barr, and Logan will speak today.
Beyond the economic calendar, US debt ceiling-related news will move the dial.
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