EUR/USD Hot Forecast for 18 June

• EUR/USD loses the grip further to 1.1870/65.
• The dollar advances beyond 92.00 to new tops.

The selling pressure around the European currency remains well in place and forces EUR/USD to give away extra ground to new 2-month lows in the 1.1870/65 band on Friday.

EUR/USD plummets to fresh levels below the 1.1900 mark on Friday, always in response to the strong improvement in the sentiment surrounding the greenback exclusively following the FOMC event on Wednesday. In the meantime, support for the European currency comes in the form of auspicious results from fundamentals in the bloc coupled with higher morale, prospects of a strong rebound in the economic activity and the investors' appetite for riskier assets.

The Relative Strength Index (RSI) is well below 30 – deep in oversold territory. That can last for some time, but not forever. After spending a day in the red, there is room for recovery.

Support awaits at 1.1891, which was the bottom on Thursday and the lowest since mid-April. Furtehr down, 1.1860 provided support back then. The next levels to watch are 1.1825 and 1.1780.Resistance is at 1.1925, Friday's high so far, followed by 1.1950, a cushion from April. The next caps are 1.1980 and 1.2010.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Jan Novotny,
Analytical expert
InstaForex Group © 2007-2021

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