EUR/USD tug of war continues
Hello traders
The range of this most traded pair has been confined between 1.10 and 1.12 for the last twelve trading sessions. A lot of the price action has felt like taking the stairs up and the escalator down during the next session.
I apologize if there seems to be a lot going on on the charts but this is the only way I can make sense of what is happening.
The fundamentals are still fairly neutral but the Euro zone data has softened considerably over the last few weeks.
The USD came under significant pressure yesterday which I believe was a result of the Chinese stimulus measures which ignited risk appetite and also positioning for the next 36 hours. Once again, all the gains of the majors were reversed during the NYC session.
Of note of course is EUR/USD finally breaking through the elusive 1.12 level, only to make a dramatic U-turn back to 1.1121.
USD job numbers tomorrow will probably the most important print since the FOMC has made it clear that their focus is now on keeping the labor market healthy and supported. Inflation is still important but the sense seems to be that it is approaching a desired level.
I have indicated important levels on the charts but feel free to correct me.
The high on EUR/USD this morning coincided with a monthly closing level that was broken, the underside of a broken uptrend line and price also hit the 4H upper bollinger like a brick wall. it did however close right at the 0.38% fib of the current uptrend which indicates a healthy correction. The series of higher closes are also encouraging for Euro bulls. It is also comfortably above all the weekly MA's.
DXY is still above the weekly 200MA.
I am not making any calls on what comes next for this pair. The data will dictate that.
Best of luck.
The range of this most traded pair has been confined between 1.10 and 1.12 for the last twelve trading sessions. A lot of the price action has felt like taking the stairs up and the escalator down during the next session.
I apologize if there seems to be a lot going on on the charts but this is the only way I can make sense of what is happening.
The fundamentals are still fairly neutral but the Euro zone data has softened considerably over the last few weeks.
The USD came under significant pressure yesterday which I believe was a result of the Chinese stimulus measures which ignited risk appetite and also positioning for the next 36 hours. Once again, all the gains of the majors were reversed during the NYC session.
Of note of course is EUR/USD finally breaking through the elusive 1.12 level, only to make a dramatic U-turn back to 1.1121.
USD job numbers tomorrow will probably the most important print since the FOMC has made it clear that their focus is now on keeping the labor market healthy and supported. Inflation is still important but the sense seems to be that it is approaching a desired level.
I have indicated important levels on the charts but feel free to correct me.
The high on EUR/USD this morning coincided with a monthly closing level that was broken, the underside of a broken uptrend line and price also hit the 4H upper bollinger like a brick wall. it did however close right at the 0.38% fib of the current uptrend which indicates a healthy correction. The series of higher closes are also encouraging for Euro bulls. It is also comfortably above all the weekly MA's.
DXY is still above the weekly 200MA.
I am not making any calls on what comes next for this pair. The data will dictate that.
Best of luck.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.