- A better mood across markets weighs on the US Dollar.
- FOMC meeting kicks off on Tuesday: 25 basis points rate hike not a done deal.
- EUR/USD moves with a bullish bias, strong resistance ahead.
An improvement in market sentiment weighed on the US Dollar and pushed EUR/USD to the upside. The pair rose for the third day in a row, climbing back above 1.0700, and it is looking at last weekly highs. The EUR/USD pair turned positive for the month as the banking crisis persists and ahead of the FOMC meeting.
The newsflow during the weekend was not light. Market participants learnt that UBS is set to buy Credit Suisse and that main central banks, including the Federal Reserve (Fed) and the European Central Bank (ECB), agreed on coordinate action to provide liquidity through US Dollar swap lines by increasing the frequency of 7-day maturity operations from weekly to daily.
On Monday, EBC President Christine Lagarde spoke at the Hearing of the Committee on Economic and Monetary Affairs of the European Parliament. She stuck to last week’s monetary policy statement. French President Emmanuel Macron’s government survived a no-confidence vote. Regarding data, Germany published the Producer Price Index (PPI) report that showed the annualized rate at 15.8%, above the 12.4% expected. The numbers confirmed that inflation is still too high, falling at a slower pace than forecasts. On Tuesday, the ZEW survey will be released in Europe. The key economic numbers are due on Friday with the PMIs.
The US Dollar pulled back on Monday as Wall Street indexes posted gains, and US yields ended flat. The greenback is somewhat under pressure ahead of the FOMC decision and following recent development regarding the banking crisis. US yields on Monday finished flat after rebounding from fresh monthly lows.
EUR/USD short-term technical outlook
-638149368948484692.png)
The daily chart shows the Euro continues to move higher, rebounding from the 100-day Simple Moving Average (SMA), currently at 1.0560. The upside could extend toward last week’s highs near 1.0755. A consolidation above 1.0750 should point to more gains, while a failure to break this level could trigger a correction, targeting the 20-day SMA at 1.0635. The 20-day SMA is starting to turn north.
The 4-hour chart shows some exhaustion signs to the upside in the very short term, which could favor a consolidation phase and a potential pullback before a test of last week’s high. A slide under 1.0635 would be a negative development for the bulls, exposing 1.0600.
View Live Chart for the EUR/USD
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
AUD/USD corrects toward 0.6850, awaits US PCE Price Index
AUD/USD is falling back toward 0.6850 in Friday's Asian trading, reversing from near 19-month peak. A tepid US Dollar bounce drags the pair lower but the downside appears called by the latest Chinese stimulus measures, which boost risk sentiment ahead of US PCE data.
USD/JPY pares gains toward 145.00 after Tokyo CPI inflation data
USD/JPY is paring back gains to head toward 145.00 in the Asian session on Friday, as Tokyo CPI inflation data keep hopes of BoJ rate hikes alive. However, intensifying risk flows on China's policy optimism support the pair's renewed upside. The focus shifts to the US PCE inflation data.
Gold price consolidates below record high as traders await US PCE Price Index
Gold price climbed to a fresh all-time peak on Thursday amid dovish Fed expectations. The USD languished near the YTD low and shrugged off Thursday’s upbeat US data. The upbeat market mood caps the XAU/USD ahead of the key US PCE Price Index.
Avalanche rallies following launch of incentive program for developers
Avalanche announced the launch of Retro9000 on Thursday as part of its larger Avalanche9000 upgrade. Retro9000 is a program designed to support developers with up to $40 million in grants for building on the Avalanche testnet.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.