EURUSD - Weekly Outlook: June 24-28

Release Time:2019-06-24 03:22

EURUSD (1.1310) • Eurozone PMI data looked a little better overall; French and German Manufacturing PMIs improved materially in Jun but that did not translate into a much better read for the preliminary Eurozone number (up just a tenth to 47.8 versus May). Eurozone Services and Composite readings strengthened to 53.4 and 52.1 respectively (from 52.9 and 51.8 in May), however. Better data helped lift EUR sentiment somewhat and perhaps provide the basis for a further gain into the end of the week—especially if US data disappoint. 

EURUSD short-term technicals: Neutral/bullish—EURUSD looks poised for its highest weekly close since Mar, if it can maintain modest gains in overnight trade into the close. The short-term technical set up looks promising for the EUR, with spot well supported in the upper 1.12s overnight and strong intraday gains suggesting a bias towards trying to extend the EUR rally above the 1.1315 highs that have marked the top of the consolidation since mid-week. Gains through 15/20 should see key resistance at 1.1345/50 tested at least.