EURUSD 90 pips as the result of Brexit not a self-strength

Shortened Version of EURUSD Weekly Forecast:

The summary of the past week: A week of 90 pips as the result of Brexit optimism, not a self-strength.

After the mixed employment report released in the previous week, and weaker-than-expected US data released throughout the week.

In response, Treasury yields turned lower and the dollar headed south.

Things in the EU were not much better, although there were not many relevant releases. German inflation was also softer-than-expected up by just 1.5% YoY. Eurozone Data is still not promising.

EURUSD gains were the result of Brexit optimism, as GBP rally added pressure on USD. Nevertheless, investors can’t find a reason to go long in the EUR, leaving the pair confined to the range established in the previous week.

Summary: We are talking about EURO vs USD. There are two legs of this equation. On the one side, there is FED continues to be the only major central bank to raise interest rates this year. On the other side, there is a slowing down economy and continuous unpromising macroeconomic figures. Under the current macroeconomic fundamental conditions, EURUSD can not have a sustainable ” bullish ” move. All temporary bullish moves will be used as a selling opportunity by the investors.

The technical overview is clear. 1.13600 remains strong resistance. The upside is capped, the downside is empty.

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