Both the CAC 40 and EUR/USD continue to consolidate into the end of this week’s trading. Euro-Zone markets will particularly be looking towards next Wednesday’s Unemployment Rate and CPI data to help provide direction. German Unemployment rate (May) is expected to be released at 5.8%, and EUR-Zone CPI (YoY) (May) is expected in at 1.9%.
Technically, the CAC 40 has traded in a narrow 93.4 point range this week. However the Index may again be trending downward in the short term with today’s move back below the 10 day EMA (exponential moving average) found at 5,342.76. So far for Friday’s session, the Index is trading down 0.92%. If the CAC 40 continues to trend lower, traders will next look for the Index to retest the standing monthly low at 5,238.40. Top winners for the CAC 40 include Publicis (+0.50%) and LafarageHocim (+0.36%). Losers for Friday’s trading include Societe Generale (-3.05%) and Credit Agricole (-1.89%).
CAC 40, Daily Chart with Averages
The EUR/USD can also be seen consolidating in the daily graph below. So far the pair has traded in a 100 pip range, with a weekly high of 1.1268 and low of 1.1168. Compared to the CAC 40, the EUR/USD remains above its 10 day EMA which is found at 1.1159. This line continues to remain a point of short term support for the pair, and breakout below this value exposes monthly lows which currently reside at 1.0839. Traders should note that the EUR/USD continues to trend higher above its 200 day MVA (simple moving average). If this trend resumes, and the current pattern of consolidation concludes, traders may look for prices to breakout above the standing 2017 high which is found at 1.1268.
EUR/USD, Daily Chart with Averages
— Written by Walker, Analyst for DailyFX.com
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