The EUR/USD pair jumped almost 70 pips following a strong opening in European equities, extending its weekly rally up to 1.1346, a fresh 3-week high. The pair has broken above last Friday's high, the one posted after the awful US Nonfarm Payroll report for September.
The American dollar is under selling pressure as FED minutes were seen as dovish, and investors discarded any chance of a rate hike for this year in the US. The Central Bank acknowledged that inflation remains way too low, and that the global economic slowdown will likely kept it subdued. There are no relevant macroeconomic news scheduled in Europe, but a couple of FOMC members will hit the wires later on in the American session.
View the Live chart of the EUR/USD
In the meantime, the EUR/USD 4 hours chart shows that the price holds around the 1.1330 region, while the technical indicators have bounced from their mid-lines and present nice upward slopes, supporting a continued advance. In the same chart, the 20 SMA has advanced beyond the 100 and 200 SMAs, maintaining a strong upward slope and offering a dynamic support now in the 1.1260 price zone.
A continued advance through the mentioned daily high, should lead to an approach to the 1.1400 figure later on in the day, with a break above it seeing the pair extending its rally up to a major long term resistance at 1.1460. Below 1.1300 on the other hand, the pair can retrace down to 1.1250/60, where buying interest is expected to surge, containing the downside and pushing the pair back towards the 1.1300 price zone.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
EUR/USD nears 1.0800 on broad US Dollar weakness
Optimism continues to undermine demand for the American currency ahead of the weekly close. EUR/USD hovers around weekly highs just ahead of the 1.0900 figure.
GBP/USD reconquers 1.2500 with upbeat UK GDP
Following BOE-inspired slump on Thursday, the British Pound changed course and trades around 1.2530. Better-than-anticipated UK GDP and a weaker USD behind the advance.
Gold resumes advance and trades above $2,370
XAU/USD accelerated its recovery on Friday, as investors drop the USD. Dismal US employment-related figures revived hopes for a soon-to-come rate cut from the Fed.
XRP tests support at $0.50 as Ripple joins alliance to work on blockchain recovery
XRP trades around $0.5174 early on Friday, wiping out gains from earlier in the week, as Ripple announced it has joined an alliance to support digital asset recovery alongside Hedera and the Algorand Foundation.
Euro area annual inflation is expected to be 2.4% in April 2024
Euro area annual inflation is expected to be 2.4% in April 2024, stable compared to March. Looking at the main components of euro area inflation, services is expected to have the highest annual rate in April.