EUR/USD intraday bearish channel in play

It was a relatively uneventful trading day in the forex market. We saw the largest move in the EUR/USD which declined 31 pips to 1.122.

Charts (4)

The US Dollar was bullish against most of its major pairs on Thursday with the exception of the NZD and AUD. 

On the economic data front, Wholesale Inventories fell 1.2% on month in the May preliminary reading (+0.4% expected), from a revised +0.2% in the April final reading, a low last seen in 2009. Durable Goods orders jumped 15.8% on month in the May preliminary reading (+10.5% expected), from a revised -18.1% in the April final reading, marking a high last reached in 2014. GDP remained at -5.0% in the first quarter third reading (as expected), in line with the first quarter second reading. Initial Jobless Claims decreased to 1,480K for the week ending June 20th (1,320K expected), from a revised 1,540K in the week before. Continuing Claims slid to 19,522K for the week ending June 13th (20,000K expected), from a revised 20,289K in the previous week. 

On Friday, Personal Income for May is expected to fall 6.0% on month, from +10.5% in April. Personal Spending for May is expected to increase 9.0% on month, from -13.6% in April. Finally, the University of Michigan's Consumer Sentiment index for the June final reading is expected to rise to 79.2 on month, from 78.9 in the June preliminary reading.                                                                                                                             
The Euro was bearish against all of its major pairs. In Europe, Germany's GfK Consumer Confidence Index for July rose from -18.6 to -9.6 (-12.0 expected). 

The Australian dollar was bullish against most of its major pairs with the exception of the NZD. 

It was a relatively uneventful trading day in the forex market. We saw the largest move in the EUR/USD which declined 31 pips to 1.122. The pair remains inside a bearish trend channel capped bu a declining trend line. Look for further pressure down towards intraday lows at 1.119 and 1.11675 in extension. A rebound above 1.124 could signal the end of the bearish trend an a reversal towards 1.2815. 



Source: GAIN Capital, TradingView

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