EUR/USD (current price: 1.1141)
The most traded currency pair continues to trade without a clear long-term direction since hitting a low near 1.05 more than a year ago. The recent developments regarding the European financial system and the Brexit referendum might be enough to move the pair out of its long-term neutral trading range. The U.S. economy is also showing signs of weakness, possibly making Friday’s employment report even more important than usual. The cross moved below the crucial 1.12 level yet again on Wednesday, as European banks remained under pressure.
Our assessment: EUR/USD is holding up above the short-term trend channel, but another test of the 200-day MA below is possible, should Friday’s U.S. jobs number come in much better than expected.
