The EUR remains at a low level, with the most traded currency pair in the market staying near 1.0730 on Monday.
Investors continue to focus on the issue of raising the US public debt limit. There are discussions underway between Congress and the White House regarding a framework agreement on increasing the debt ceiling.
It is expected that Republicans will agree to raise the borrowing limits by 4 trillion USD over two years if the Democrats allow for restrictions on non-defense spending in 2024.
As it is a public holiday in the US on Monday, official news is anticipated in the coming days. This week, the country will release important statistics, including labor market indicators for May.
Technical analysis
On the H4 timeframe, EUR/USD has completed a downward wave, reaching 1.0701. Currently, the market is correcting towards 1.0760. After the correction, a decline to 1.0730 can be expected. It is possible for a consolidation range to form around 1.0730. If the price breaks out of the range upwards, the correction might continue towards 1.0804, which is the initial target. This scenario is technically supported by the MACD, as its signal line is currently at lows below zero and preparing to rise towards the zero mark.
On the H1 timeframe, EUR/USD experienced a downward wave, reaching 1.0701. The market has made an upward impulse towards 1.0730 and is currently forming a consolidation range around this level. A potential upward structure might develop towards 1.0744, which is a local target. Once the price reaches this level, a decline to 1.0730 followed by a rise to 1.0760 is expected. The Stochastic oscillator confirms this scenario, as its signal line is near 80. A decline to 50 could occur today, after which a rise towards 80 may follow.
Before you enter foreign exchange and stock markets, you have to remember that trading currencies and other investment products is trading in nature and always involves a considerable risk. As a result of various financial fluctuations, you may not only significantly increase your capital, but also lose it completely. Therefore, our clients have to assure RoboForex that they understand all the possible consequences of such risks, they know all the specifics, rules and regulations governing the use of investment products, including corporate events, resulting in the change of underlying assets. Client understands that there are special risks and features that affect prices, exchange rates and investment products.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price holds strength ahead of US core PCE inflation
Gold price holds onto gains near $2,200 in Thursday’s European session. The precious metal exhibits firm footing ahead of the United States core PCE Price Index data for February, which will be published on Friday.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.