The EUR/USD pair started the day with a strong footing, up to a fresh high of 1.1248 in the European opening. Equities are down, German bunds yields continue to rise, and in general, the market is extending yesterday's rallies. So far, news that Moody's rating agency has cut Greece's credit rating to 'Caa2' from 'Caa1' and assigned it a "negative" outlook, have been ignored. Macroeconomic released in Europe showed that local unemployment remained at 11.3% in March against expectations of a decline to 11.2%, whilst the EU inflation met expectations in April, at 0.0% yearly basis, whilst the core reading held at 0.6%.
The pair retraced below the 1.1200 figure currently trading around 1.1190, and with the 4 hours chart showing that the technical indicators are heading sharply higher after a limited downward correction, in extreme overbought territory. In the same chart, the 20 SMA has advanced further below the current price now near the 50% retracement of the 1.1533/1.0461 bearish run around 1.1000. The pair is also well above the 61.8% retracement of the same rally at 1.1120, now a key support in case of additional declines below 1.1160. Renewed buying interest above 1.1220 on the other hand, should see the pair extending up to 1.1260 first, with the 1.1300 level coming at sight if the market pushes prices beyond it.
View Live Chart for EUR/USD
The pair retraced below the 1.1200 figure currently trading around 1.1190, and with the 4 hours chart showing that the technical indicators are heading sharply higher after a limited downward correction, in extreme overbought territory. In the same chart, the 20 SMA has advanced further below the current price now near the 50% retracement of the 1.1533/1.0461 bearish run around 1.1000. The pair is also well above the 61.8% retracement of the same rally at 1.1120, now a key support in case of additional declines below 1.1160. Renewed buying interest above 1.1220 on the other hand, should see the pair extending up to 1.1260 first, with the 1.1300 level coming at sight if the market pushes prices beyond it.
View Live Chart for EUR/USD
Recommended Content
Editors’ Picks
EUR/USD clings to gains above 1.0750 after US data
EUR/USD manages to hold in positive territory above 1.0750 despite retreating from the fresh multi-week high it set above 1.0800 earlier in the day. The US Dollar struggles to find demand following the weaker-than-expected NFP data.
GBP/USD declines below 1.2550 following NFP-inspired upsurge
GBP/USD struggles to preserve its bullish momentum and trades below 1.2550 in the American session. Earlier in the day, the disappointing April jobs report from the US triggered a USD selloff and allowed the pair to reach multi-week highs above 1.2600.
Gold struggles to hold above $2,300 despite falling US yields
Gold stays on the back foot below $2,300 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays in negative territory below 4.6% after weak US data but the improving risk mood doesn't allow XAU/USD to gain traction.
Bitcoin Weekly Forecast: Should you buy BTC here? Premium
Bitcoin (BTC) price shows signs of a potential reversal but lacks confirmation, which has divided the investor community into two – those who are buying the dips and those who are expecting a further correction.
Week ahead – BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.