Fundamental approach:
- The euro-dollar declined this week amid renewed US dollar strength, supported by hawkish Fed signals.
- Divergent central bank stances pressured the pair, with the ECB's ongoing easing contrasting with the Fed's wait-and-see approach. Besides, PPI data were much higher than expected, which both complicates and supports the US dollar.
- The euro-dollar may retrace ahead of next week's US nonfarm payrolls (NFP) and ECB meeting. Volatility could rise on an NFP surprise.
Technical approach:
- EURUSD corrects and retests the support at 1.1900 after creating a multi-month high. The price is above both diverging EMAs, indicating the bullish trend is still in place.
- If EURUSD breaches below 1.1900, the price may retrace further toward the next support at 1.1800, which is also a confluence with EMA21.
- On the contrary, remaining above 1.1900 may prompt a retest of the previous swing high at around 1.2040.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- The euro-dollar declined this week amid renewed US dollar strength, supported by hawkish Fed signals.
- Divergent central bank stances pressured the pair, with the ECB's ongoing easing contrasting with the Fed's wait-and-see approach. Besides, PPI data were much higher than expected, which both complicates and supports the US dollar.
- The euro-dollar may retrace ahead of next week's US nonfarm payrolls (NFP) and ECB meeting. Volatility could rise on an NFP surprise.
Technical approach:
- EURUSD corrects and retests the support at 1.1900 after creating a multi-month high. The price is above both diverging EMAs, indicating the bullish trend is still in place.
- If EURUSD breaches below 1.1900, the price may retrace further toward the next support at 1.1800, which is also a confluence with EMA21.
- On the contrary, remaining above 1.1900 may prompt a retest of the previous swing high at around 1.2040.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.