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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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.