fxs_header_sponsor_anchor

News

EUR/USD technical analysis: Probing confluence of resistance at 1.1265

  • EUR/USD is chipping away at key resistance at 1.1265. 
  • A break higher would expose 1.13.

The American Dollar remains on the defensive in Asia as expectations of a July rate cut have firmed, courtesy of dovish testimony by the US Federal Reserve Chairman Powell. The market is now pricing around 30 basis points of easing on 31 July. 

The US Dollar weakness has pushed EUR/USD higher to 1.1265. That level marks the confluence of the 4-hour chart 200- and 50-candle moving averages and also the trendline connecting May 30 and June 18 low. 

A convincing break higher would add credence to the falling wedge breakout, a bullish reversal pattern, on the 4-hour chart and open the doors to levels above 1.13. 

The bulls, however, may have a tough time forcing a convincing break above 1.1265, as the 4-hour chart 50- and 200-dandle MAs are about to produce a bearish crossover. 

As of writing, EUR/USD is trading at 1.1264. 

4-hour chart

Trend: Bullish above 1.1265

Pivot points

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.