Mario Blascak, PhD
Independent Analyst
The EUR/USD has been boosted massively in last two trading days by political and economic news that supported the Euro’s rise to the highest level since December 2014. Busting $1.2100 level earlier on Friday opens the way for EUR/USD to target $1.2170 next.
First, it was the minutes from December ECB meeting that supported EUR/USD revealing the willingness of the Governing Council members to modify its extremely light monetary policy in an environment of broad-based economic growth and improving economic outlook for the Eurozone.
This morning it is political news of the German political parties reaching breakthrough agreement on forming a so-called Grand coalition that has lifter EUR/USD above $1.2100 for the first time in more than three years.
Having been for three years below $1.2100 level, it takes the broad picture to analyze the potential for further moves. From the long-term perspective busting the 1.2100 level open the way for $1.2170 representing 50% Fibonacci retracement of the slide of EUR/USD from $1.4000 to cyclical low of $1.0350.
With technical oscillators including Momentum, the Relative Strength Index and Slow Stochastics all pointing upwards, the potential of moving towards the targeted $1.2170 is in place, especially as the next target is in sight of current spot rate.Should $1.2170 be broken on the upside, next target for EUR/USD is $1.2600, representing 61.8% Fibonacci retracement of the above-mentioned move lower to $1.0350.
EUR/USD daily chart
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
USD/JPY trades below two-week top set on Thursday; looks to BoJ for fresh impetus
USD/JPY trades with a positive bias below the 143.00 mark as traders await the BoJ policy update before placing fresh directional bets. In the meantime, data published this Friday showed that Japan's Core CPI rose to a 10-month high in August and reaffirmed bets that the BoJ will hike interest rates again in 2024.
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood
AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed.
Gold price holds steady near record peak amid bets for more Fed rate cuts
Gold price hovers near the all-time peak touched earlier this week amid a bearish USD and rising bets for more upcoming rate cuts by the Fed. Moreover, concerns about an economic downturn in the US and China further underpin the safe-haven XAU/USD.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
XRP eyes gains as Ripple gears up for stablecoin launch, Grayscale XRP Trust notes rising NAV
Ripple (XRP) gained 2.3% since the start of the week. The altcoin’s gains are likely powered by key market movers that include Ripple USD (RUSD) stablecoin, Grayscale XRP Trust performance and the demand for the altcoin among institutional investors.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.