EURUSD: Euro Jumps on EU Optimism

22 / 06 / 2018
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The EURUSD pair was trading notably higher on Friday and the single currency was seen 0.50% stronger against the greenback, hovering around 1.1670 during the London session.

The euro was boosted after the Eurozone creditors agreed on debt restructuring with Greece, which might lead to the country being able to fully return to the bond markets, after years of being unable to borrow money at reasonable rates from investors.

Moreover, the services PMI for June improved in the Eurozone (unexpectedly) and rose from 53.8 to 55.0, while analysts had expected a marginal decline to 53.7. However, the manufacturing sector deteriorated further from 55.5 to 55.0.

The pair broke higher from the recent consolidation zone, printing a cyclical bottom at 1.1550, where the May’s lows are also seen. Therefore, a double bottom pattern could be emerging here. The first resistance for today’s trading is at 1.1730 and afterward at the pre-ECB levels around 1.1830.

On the downside, bulls need to defend 1.1645 to stay in the daily bullish outlook, while the next buying zone could be seen around 1.16. As there are not many major data on the agenda during the US session, current bullish bias could persist throughout the day. In all cases we strongly recommend to have rigorous money and risk management.

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