Slobodan Drvenica
Windsor Brokers
EUR/USD
EURUSD is consolidating under new multi-week high on Wednesday, after bulls cleared pivotal Fibo resistance at 1.0959 (61.8% of 1.1275/1.0448 downtrend) and cracked psychological 1.10 barrier.
The Euro received fresh support from expectations that the Fed is done with rate hikes and rising bets for start of cutting interest rates in the first half of 2024.
As expected, bulls faced increased headwinds at 1.10 zone, with overbought conditions on daily chart, prompting traders to collect some profits.
Technical picture on daily chart is increasingly bullish and supports the pair for further advance, as close above 1.0959 and probe through 1.10, generated fresh positive signals.
Dips should be limited and positioning for fresh push higher, with rising 10DMA (1.0926) to ideally contain and offer better levels to re-enter bullish market for acceleration through 1.10 pivot at test of next target at 1.1080 (Fibo 76.4% of 1.1275/1.0448).
Caution on break and close below 10DMA which would put larger bulls on hold for deeper correction.
German and EU inflation data, due today and Thursday, will be focused for fresh direction signals.
Res: 1.1000; 1.1017; 1.1065; 1.1080.
Sup: 1.0959; 1.0926; 1.0882; 1.0852.
-638368518242579772.png)
Interested in EUR/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD stays in positive territory above 1.0850 after US data
EUR/USD clings to modest daily gains above 1.0850 in the second half of the day on Friday. The improving risk mood makes it difficult for the US Dollar to hold its ground after PCE inflation data, helping the pair edge higher ahead of the weekend.
GBP/USD stabilizes above 1.2850 as risk mood improves
GBP/USD maintains recovery momentum and fluctuates above 1.2850 in the American session on Friday. The positive shift seen in risk mood doesn't allow the US Dollar to preserve its strength and supports the pair.
Gold rebounds above $2,380 as US yields stretch lower
Following a quiet European session, Gold gathers bullish momentum and trades decisively higher on the day above $2,380. The benchmark 10-year US Treasury bond yield loses more than 1% on the day after US PCE inflation data, fuelling XAU/USD's upside.
Avalanche price sets for a rally following retest of key support level
Avalanche (AVAX) price bounced off the $26.34 support level to trade at $27.95 as of Friday. Growing on-chain development activity indicates a potential bullish move in the coming days.
The election, Trump's Dollar policy, and the future of the Yen
After an assassination attempt on former President Donald Trump and drop out of President Biden, Kamala Harris has been endorsed as the Democratic candidate to compete against Trump in the upcoming November US presidential election.