Richard Perry
Independent Analyst
EUR/USD
With the run of decisive positive closes higher on EUR/USD the bull run continues. The move has now decisively broken though the resistance of the late March high at $1.1145 to continue the impressive rally of the past three weeks. The original breakout above $1.1015 implied a move towards $1.1250 and this is still on the cards the way the market is moving. Momentum indicators are certainly with the breakout, with the RSI into the 70s, Stochastics strong and MACD lines accelerating higher above neutral. We still believe that the near term outlook is stretched though, as historically the RSI tends to struggle around the 70 mark and this is a warning for the current run. However, the strength of momentum and configuration of daily candlesticks (which have solid and strong positive real bodies) reflects the strength of the buying pressure. So drawing in a sharp uptrend which rises around $1.1160 today, this should be watched for potential reversal signs. It would only need a negative candle/close for this mini trend to be breached and warn of a corrective slip. For now though as the market again pushes higher, we are still happy to sit long. We are just cautious for profit-taking (especially with the ECB announcement on Thursday). We are also watching for the potential negative divergences on hourly chart (MACD especially), whilst hourly RSI below 40 would also be a warning. Initial support band $1.1080/$1.1145.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD stays below 1.1100 after mixed US data
EUR/USD remains under bearish pressure and trades below 1.1100 on Tuesday. The data from the US showed that job openings rose more than expected in August. The disappointing ISM Manufacturing PMI reading, however, makes it difficult for the USD to gather strength.
GBP/USD struggles to rebound, trades near 1.3300
GBP/USD continues to trade deep in negative territory at around 1.3300 in the American session on Tuesday. The mixed macroeconomic data releases from the US limit the USD's rebound, helping the pair hold its ground.
Gold recovers above $2,660 on escalating geopolitical tensions
Gold gathers recovery momentum and trades above $2,660 on Tuesday. Escalating geopolitical tensions on reports of the Israeli army mounting a ground invasion of Lebanon help XAU/USD push higher despite the renewed US Dollar strength.
Gillian Lynch, head of EU at Gemini: “The next phase of crypto growth will be exponential”
Gillian Lynch is the Head of Ireland and EU at Gemini, the US crypto exchange founded by Cameron and Tyler Winklevoss. FXStreet interviewed her during the European Blockchain Convention 2024 in Barcelona, where Lynch expressed her optimism about the crypto industry.
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.