FXStreet (Barcelona) – The Westpac Team shares the macro and technical outlook for EUR/USD, noting that short-term pressure remains to the upside towards 1.1450/1.1550.
Key Quotes
“Macro: EUR continues to trade with an explicably firm tone. But, would not give up on the downside. Markets appear to be far too sanguine on Greek default risk and US retail sales appear set to match the more constructive growth signals from pending home sales, durable goods orders and non-farm payrolls. The price action may be constructive but EUR has also struggled to trade sustainably above 1.13 for a while now.”
“Model: Our entire suite of signals remain surprisingly bullish EUR: its decline over the last year has flipped our valuation signals to a more constructive stance, stronger data in recent months has boosted our EUR growth signal while the region’s external accounts remain in rude health, keeping our current account momentum signal bullish EUR.”
“Technical: Failure to break below key Fibonacci support at 1.0840/45 in May has evolved into a tangible upswing. Monday’s new multi-week high close highlights short term upside risk towards the February / May highs at 1.1450/1.1550.”
(Market News Provided by FXstreet)