EUR/USD spiked higher on Monday, breaking above the downside resistance line drawn from the peak of March 31st. This, combined with the fact that the rate has been also respecting an upside support line drawn from the low of May 13th, suggests that the short-term outlook may have turned to somewhat positive for now.
At the time of writing, the rate is trading slightly below the 1.0695 barrier, marked by the inside swing low of April 25th, the break of which could aim for the key area of 1.0760, which is marked by the inside swing lows of April 14th and 19th. If the bulls are not willing to stop there, we may see them aiming for the 1.0845 zone, where another break could target the key obstacle of 1.0935, which acted as a temporary ceiling between April 6th and 21st. If they don’t abandon the action there either, then we may see them pushing towards the 1.1025 area, marked by the inside swing low of April 1st.
Shifting attention to our short-term oscillators, we see that the RSI moved higher and just crossed above 70, while the MACD lies above both its zero and trigger lines, pointing up as well. Both indicators detect strong upside speed and support the notion for further declines in this exchange rate.
On the downside, we would like to see a clear dip below 1.0470 before we reconsider the bearish case. Such a move would confirm the rate’s return back below both the aforementioned diagonal lines, and may initially target the 1.0350 zone, marked by the lows of May 12th and 15th, the break of which could carry larger bearish implications, perhaps setting the stage for a teste near the 1.0235 territory, marked by the inside swing high of July 2002.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.
72,99% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.