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Fundamentals

During the Asian session on Thursday (June 8), EURUSD fluctuated in a narrow range of around 1.07, currently trading around 1.0706. Both bulls and bears fought in the chart of 1.07, and yesterday, it stood firm near the low of 1.0670, which is also three consecutive days to test the position, and it is now also temporarily stabilized between 1.0650 and 1.0750. Bulls and bears are not interested in the war. If bulls push the exchange rate above the 1.0750 resistance, the market may regain upward momentum. On the contrary, if it is below 1.0650, market sentiment may deteriorate and return to the support chart of 1.0550. You need to focus on the support of relevant data in the short term.

On this trading day, investors need to pay attention to the GDP of the first quarter in the eurozone and employment data tonight, which will be an important guide for the ECB rate hike expectations. It is recommended to pay attention to tonight's US initial jobless claims.

Overall: In May, under the influence of the support of the debt crisis risk aversion and the expected weakening of the monetary policy shift, the dollar index rebounded and strengthened, climbing above the chart of 104. Non-US currencies depreciated under pressure, but the magnitude of the euro depreciation is relatively small. From a short-term perspective, the US economic resilience and the expected strengthening of interest rate hikes in June and July provided support for the US dollar index. Under the trend of the dollar index continuing to strengthen, the euro has been suppressed by the weakening of the eurozone economic data and the impact of inflation falling beyond expectations, and it has maintained a volatile and weak trend in the short term. However, in the medium and long term, with the end of the Fed rate hike, the upward momentum of the US dollar index may be gradually released, and there has been fatigue, and the general direction of the euro may continue to rise.

Technical Analysis

In the daily chart, the euro yesterday retraced the first support to rebound, and the US session touched the former resistance under pressure to the downside. The daily chart closed on the upper and lower shadow candlesticks of a short white body. From the closing, the former low support still exists, and short and long oscillation has not yet ended in the short term. But the market MACD indicator has a trend of a golden cross, and it is now approaching the oversold area in the accumulation of upward momentum in the short term. The intraday initial support is below 1.0670, the second support is 1.0620, the initial resistance above is 1.0750, and the second resistance is 1.0800. If the price remains above the first support, the short term is expected to test the first resistance and hit the second resistance position.

Intraday trading plan: aggressive people can go long with small positions around 1.0700, the stop loss is set at 1.0620, the first target is to gain a part of the position at 1.0800, and change the remaining position to a capital preservation single.

Trading Recommendations

Trading direction: Long

Entry price: 1.07000

Target price: 1.10000

Stop loss: 1.05000

Support: 1.0600, 1.05000

Resistance: 1.08000, 1.10000