- Risk-perceived assets have regained their mojo as market mood has turned cheerful.
- Oversold momentum indicators in a higher lows structure offer smart money channelization opportunity.
- The RSI (14) has rebounded after dropping below 30.00.
The EURUSD pair has delivered a firmer reversal after sensing a decent buying interest of around 0.9743 in the Tokyo session. The asset has extended its rebound move and is aiming to recapture the immediate hurdle of 0.9800 as the risk-on impulse has regained traction.
The mighty US dollar index (DXY) has refreshed its day’s low below 112.50 as anxiety ahead of the US Nonfarm Payrolls (NFP) has aired. Meanwhile, the 10-year US Treasury yields have slipped to near 4.14%.
On a four-hour scale, the major has rebounded after testing the upward-sloping trendline placed from September low at 0.9536. However, the asset is being offered below the 20-and 200-period Exponential Moving Averages (EMAs), which indicates that the trend is still bearish. Moving Averages are lagging indicators, therefore cannot tag a reversal as a buying opportunity.
While the Relative Strength Index (RSI) (14) rebounded after dropping to near 27.65 as the momentum oscillators triggered oversold signals.
The conjunction of higher-low structure and oversold momentum oscillators are hinting that smart money will be poured into the Euro.
Going forward, a break above the immediate hurdle of 0.9800 will send the asset towards October 23 high at 0.9900, followed by the parity.
On the flip side, the Euro could lose strength if it drops below October 21 low at 0.9705. This will drag the asset towards October 13 low and September low at 0.9632 and 0.9536 respectively.
EURUSD four-hour chart
-638031371440502750.png)
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
EUR/USD eases to near 1.0700 ahead of German inflation data
EUR/USD is paring gains to near 1.0700 in the European session on Monday. The pair stays supported by a softer US Dollar, courtesy of the USD/JPY sell-off and a risk-friendly market environment. Germany's inflation data is next in focus.
USD/JPY recovers after testing 154.50 on likely Japanese intervention
USD/JPY is recovering ground after sliding to 154.50 on what seemed like a Japanese FX intervention. The Yen tumbled in early trades amid news that Japan's PM lost 3 key seats in the by-election. Focus shifts to the US employment data and the Fed decision later this week.
Gold price holds steady above $2,335, bulls seem reluctant amid reduced Fed rate cut bets
Gold price (XAU/USD) attracts some buyers near the $2,320 area and turns positive for the third successive day on Monday, albeit the intraday uptick lacks bullish conviction.
Ripple CTO shares take on ETHgate controversy, XRP holders await SEC opposition brief filing
Ripple loses all gains from the past seven days, trading at $0.50 early on Monday. XRP holders have their eyes peeled for the Securities and Exchange Commission filing of opposition brief to Ripple’s motion to strike expert testimony.
Week ahead: FOMC and jobs data in sight
May kicks off with the Federal Open Market Committee meeting and will be one to watch, scheduled to make the airwaves on Wednesday. It’s pretty much a sealed deal for a no-change decision at this week’s meeting.