EUR/USD Price Analysis: Trades with a mild negative bias, bullish potential seems intact – by hareshmenghani EURUSD ECB Fed Technical Analysis Currencies
European Central Bank officials delivered mixed signals regarding the next policy moves after the July meeting, which led to a significant decline in the German yields on Tuesday and in turn, is seen undermining the shared currency. The, on the other hand, struggles to capitalize on the overnight bounce from its lowest level since April 2022 amid growing acceptance that the Federal Reserve will soften its hawkish stance.
From a technical perspective, the range-bound price action witnessed over the past four days constitutes the formation of a rectangle on short-term charts. Against the backdrop of the recent rally from the 100-day Simple Moving Average , this might still be categorized as a bullish consolidation phase. That said, the Relative Strength Index on the daily chart is flashing overbought conditions and acting as a headwind for the EUR/USD pair.
The weekly low, around the 1.1200 mark, is likely to protect the immediate downside. Sustained weakness below could trigger a fresh bout of technical selling and drag the EUR/USD pair towards the 1.1145 support zone. Some follow-through selling could pave the way for additional losses, though is likely to get bought into near the 1.1100 round figure. The latter should act as a strong base for spot prices, which if broken decisively would negate the near-term positive outlook.
On the flip side, the 1.1245-1.1250 region, followed by the multi-month peak, around the 1.1275 zone, now seem to pose immediate resistance ahead of the 1.1300 round-figure mark. The next relevant hurdle is pegged near the 1.1335 area, above which the pair could aim to reclaim the 1.1400 mark and climb further towards the 1.1450 region en route to the 1.1500 psychological mark, or the 2022 yearly peak.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EUR/USD Price Analysis: Initial hurdle comes at 1.1250EUR/USD comes under pressure and puts the 1.1200 region to the test on Monday. While the continuation of the upside momentum appears favoured in the v
Read more »
GBP/USD Price Analysis: Trades with modest intraday gains below 1.3100, bullish bias remainsGBP/USD Price Analysis: Trades with modest intraday gains below 1.3100, bullish bias remains – by hareshmenghani GBPUSD Fed BOE Technical Analysis Currencies
Read more »
EUR/USD faces further gains near term – UOBEconomist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group see EUR/USD advancing further in the next few weeks. Key Quotes 24-hour view:
Read more »
EUR/USD Forex Signal: Ripe for a Brief PullbackThe EUR/USD exchange rate continued its relentless bull run as bets of an upcoming Fed and ECB divergence continued.
Read more »
EUR/USD prods 1.1250 hurdle on hawkish ECB talks ahead of US Retail SalesEUR/USD bulls keep flirting with the 1.1250 for the third consecutive day amid early hours of Tuesday’s Asian session, staying around the highest leve
Read more »
EUR/USD: Gains beyond the 1.13 mark may prove to be unsustainable for now – INGEUR/USD kept rising. However, economists at ING expect the world’s most popular currency pair to struggle to enjoy further gains. Stretched short-term
Read more »