EUR/USD PRICE OUTLOOK: EURO TO SUSTAIN STRENGTH VS DOLLAREUR/USD value motion has muscled its approach greater for four-straight buying and sellin
EUR/USD PRICE OUTLOOK: EURO TO SUSTAIN STRENGTH VS DOLLAR
- EUR/USD value motion has muscled its approach greater for four-straight buying and selling periods
- The Euro appears primed to strengthen additional versus the US Greenback following the Fed
- Bullish breakout from the falling wedge chart sample has EUR/USD eyeing 1.2000
EUR/USD value motion is up over 100-pips to date this week with the Euro pacing its fourth consecutive optimistic shut on Thursday. The Euro appears to be not directly benefiting from broad-based US Greenback weak spot as markets place round up to date Fed steerage.
Particularly, FOMC Chair Powell echoed throughout his press convention yesterday how he nonetheless thinks inflation is basically transitory and that the economic system stays ‘a methods off’ from reaching the substantial additional progress goalpost for tapering. This dovish tone seemingly stands to maintain the US Greenback buying and selling on its again foot and assist EUR/USD proceed pushing greater.
EUR/USD PRICE CHART: DAILY TIME FRAME (19 MARCH TO 29 JULY 2021)
To not point out, latest power exhibited by EUR/USD value motion seems to have confirmed a bullish breakout from the falling wedge chart sample. Potential for a reversal greater was hinted at by optimistic divergence on the relative power index, and upward momentum is now accelerating as indicated by the MACD. Although month-to-date highs, the higher Bollinger Band, and 50-day transferring common do stand out as nearside technical resistance, it’s potential that EUR/USD overcomes these obstacles and extends its advance.
This brings the 38.2% Fibonacci retracement and psychological 1.2000-price ranges into focus for EUR/USD bulls with the 1.1800-handle seemingly offering formidable assist. That mentioned, the upcoming launch of nonfarm payrolls information scheduled for subsequent Friday, 06 August at 12:30 GMT does pose appreciable occasion danger. A greater-than-expected NFP report might see the Euro give up positive factors again to the US Greenback and EUR/USD value motion recoil decrease.
Preserve Studying – US Greenback Hits Month-to-month Low as Jobless Claims, Q2 GDP Disappoint
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
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