FX.co ★ Weekly forecast for EUR/USD for June 16-20, 2014

EUR/USD

It's a quiet week for EUR/USD. Traders will eye CPI & Core CPI on Monday, German ZEW economic sentiment on Tuesday, German PPI, on Friday. On the dollar front, FOMC data on Wednesday may show a path in coming days.

Short term- The monthly momentum oscillators favor selling mode. The pair is trading near the supported trend line and 50-month SMA at 1.3372 levels, at which we expect solid support in the medium term, breaks below this, may cause huge damages in the short term.

Weekly basis- For this week, the pair has initial support at 1.35 levels, breaks below this, it has an immediate support zone between 1.34877 levels. We are bearish below 1.3460 levels, the same we have been recommending for the last 2 weeks. On the up side, the pair has strong resistance at 1.3585 (50-week SMA). The pair favors buying above that, for 1.3615 and 1.3677 levels. On the lower side, below 1.3460, it can fall to 1.3410/1.34 and 1.3372 levels. As of now, in Asia's session the pair is taking support near weekly lower Bollinger bands.

NOTE- cmp 1.3543.

Reversal point 1.3677.

Sell below 1.3460 with targets at 1.3410 and 1.3372.