EUR/USD Current price: 1.1638
The EUR/USD pair settled at its highest since August 2015 at 1.1638, up for a second consecutive week. The bullish breakout came on Thursday, following the ECB monetary policy meeting. President Draghi did his best to talk down the Euro, but the market did not believe him, grappled to the line in where he said that changes to the ongoing policies will be discussed next fall. Quantitative easing is set to remain in place until next December, but the market rushed to price in tapering. In the meantime, data released in the US these last days were soft, further backing the ongoing rally in the pair.
Next Wednesday, the US Federal Reserve will have its own monetary policy meeting, a "non-live" one, meaning that it won't include fresh economic reviews or a press conference, which means that there are little chances the event could revert the negative sentiment towards the greenback, unless Yellen & Co. come with a huge, unexpected surprise. In the US, there's just one more rate hike pending for this year, and latest data and political turmoil suggest that the Central Bank will have to pause afterwards. The imbalance between both central banks is shrinking.
From a technical point of view, the pair is clearly overbought and the risk of a downward corrective movement is high for this upcoming days. In the daily chart, however, there is no sign that that could happen, as technical indicators keep heading north, with the RSI at 74, whilst a bullish 20 DMA keeps leading the way higher, currently around 1.1450. In the 4 hours chart, technical indicators have lost upward strength, but are currently consolidating within overbought levels, whilst the price is also well above all of its moving averages. A downward correction towards 1.1460, will hardly the ongoing trend, although below that level, bulls will likely rush to take profits out of the table, fueling the decline.
Support levels: 1.1615 1.1560 1.1520
Resistance levels 1.16600 1.1710 1.1745
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
AUD/USD bounces to 0.6450, shrugs off mixed Australian jobs data
AUD/USD is rebounding to test 0.6450 amid renewed US Dollar weakness in the Asian session on Thursday. The pair reverses mixed Australian employment data-led minor losses, as risk sentiment recovers.
USD/JPY drops to test 154.00 on Japan's intervention warnings
USD/JPY extends losses to test 154.00 in Asian trading on Thursday. The pair is undermined by the latest US Dollar pullback, Japan's FX intervention risks and a softer risk tone. Focus shifts to more Fedspeak and US data.
Gold price finds buyers again near $2,355 as USD licks its wounds
Gold price is attempting a tepid bounce in the Asian session, having found fresh demand near $2,355 once again. Gold price capitalizes on a softer risk tone and an extended weakness in the US Treasury bond yields, despite the recent hawkish Fed commentary.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.