Dollar Index-EUR/USD Monthly timeframe:

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Chart studies indicate a bullish scenario could develop on EUR/USD, targeting the $1.20 area.

Technical change on this timeframe is often limited, though serves as guidance to potential longer-term moves.

Down 2.4 percent MTD, June remains on the ropes. Reclaiming May’s gains and also chipping into April’s upside, EUR/USD is touching gloves with familiar support at $1.1857-1.1352.

Upstream is focused on 2021 peaks at $1.2349; additional enthusiasm may welcome ascending resistance (prior support [$1.1641]).

Based on trend studies, the primary uptrend has been underway since price broke the $1.1714 high (Aug 2015) in July 2017.

Additionally, price breached major trendline resistance, taken from the high $1.6038, in July 2020.

Observed levels By time frames

US Stock Market: Infrastructure Deal Puts Dow in Focus.

The indexes are being bolstered by robust Nike earnings, impressive bank stress test results and a bipartisan infrastructure deal.

The major U.S. stock indexes are trading higher during the premarket session on Friday following another record performance by the S&P 500 Index the previous session. The indexes are being bolstered by a number of events including robust earnings reports, impressive bank stress test results and the news that the White House struck an infrastructure deal with a bipartisan group of senators.

Looking ahead, the Commerce Department is set to release May’s core personal consumption expenditures (PCE) index at 12:30 GMT. Economists polled by Dow Jones expected prices rose 3.4% in May from a year earlier. Economists also estimate prices increased by 0.6% from April to May

Bank Shares Rise after Fed Announces Stress Test Results

Shares of major U.S. banks are up after the Federal Reserve announced the banks could easily withstand a severe recession. The Fed, in releasing the results of its annual stress test, said the 23 institutions in the 2021 exam remained “well above” minimum required capital levels during a hypothetical economic downturn.

GBP/USD Continues to find support agains swing area

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Yesterday, the GBPUSD fell below its 100 hour moving average (lower blue line on the chart below) on two separate occasions only to find support near a old swing area between 1.3886 and 1.38948 each time (the red numbered circles five and six).

Today, a similar dynamic applied. The price move below the 100 hour moving average, but stalled at the swing area on each of the two tests. The last test just occurred in the early New York hours, and we are seeing a bounce back toward the 100 hour moving average currently at 1.39302.

Earlier this week, the highs tried to extend above its falling 200 hour moving average (green line) currently at 1.2949. On Wednesday and Thursday, that moving average was broken, but was met with less than stellar upside momentum, and buyers quickly turned to sellers, pushing the price lower. That 200 hour moving average is now converging with the 100 day moving average near 1.2947.

So overall from a technical perspective, the price for the GBPUSD is respecting the swing area on the downside. On the topside, the 200 hour moving average has been more or less the upper extreme. With the 200 hour moving average moving lower toward the 100 day moving average, the support and resistance levels are converging.

GBP/USD PRICE CHART: DAILY TIME FRAME (21 MAY TO 23 JUNE 2021)

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