The Euro is trading sharply higher on Monday after a report showed the recovery of economic sentiment in the Euro Zone intensified in June after a modest pick-up in May, with improvements across all sectors and a much more buoyant sense of future business, European Commission data showed on Monday.
At 10:51 GMT, the EUR/USD is trading 1.1281, up 0.0062 or +0.55%.
Overall sentiment rose to 75.7 points in June from 67.5 in May, still short of market expectations of 80.0 and well below the average of 100 since 2000.
The index crashed in April to its lowest level since measurements started in 1985 as lockdowns closed large sectors of the economy.
Daily Technical Analysis
The main trend is down according to the daily swing chart. A trade through 1.1168 will signal a resumption of the downtrend. The main trend will change to up on a move through the last main top at 1.1422.
The minor trend is also down. A trade through 1.1349 will change the minor trend to up. This will also shift momentum to the upside. A trade through 1.1191 will indicate the selling pressure is increasing.
The minor range is 1.1168 to 1.1349. Its 50% level or pivot at 1.1259 is new support.
The short-term range is 1.1422 to 1.1168. Its 50% level at 1.1295 is potential resistance, but also the trigger point for an acceleration to the upside.
On the downside, the major support zone is 1.1167 to 1.1066.
Daily Technical Forecast
Based on the early price action and the current price at 1.1281, the direction of the EUR/USD the rest of the session on Monday is likely to be determined by trader reaction to the downtrending Gann angle at 1.1292 and the 50% level at 1.1295.
A sustained move over 1.1295 will indicate the presence of buyers. This could trigger an acceleration to the upside with the next targets a minor top at 1.1349 and a downtrending Gann angle at 1.1357.
A sustained move under 1.1292 will signal the presence of sellers. This could trigger a break into the 50% level at 1.1259. This is a potential trigger point for an acceleration to the downside with targets coming in at 1.1240 and 1.1191.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire
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