Euro trades lower versus US Dollar as Federal Reserve rate hike bets solidify.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]

• Euro trades lower versus US Dollar as Federal Reserve rate hike bets solidify.
• Strong US banking results, persistent inflation and Fed commentary suggest at least another hike in May.
• Upside for Euro dependent on April inflation data and ECB Bank Lending Survey.

The Euro (EUR) trades at 1.0960 against the US Dollar (USD) during the early European session on Wednesday. The pair has pulled back slightly from the recent April 14 highs of 1.1075 as the US Dollar recovered on bets the Federal Reserve (Fed) will continue raising interest rates.

From a technical perspective the pair is broadly in a medium-term uptrend which is biased to extend.

EUR/USD is in a medium-term uptrend since recovering from the September 2022 lows and the established trend is expected to continue. After a pullback in February 2023, EUR/USD recouped its losses during March and made new year-to-date highs above 1.10 on April 13.

EUR/USD: Daily Chart

During this week the pair has pulled back down into the mid 1.09s, however, where it currently trades at the time of writing. Given the strength of the overall uptrend, however, it is expected to recover and continue extending higher.

A break and daily close above the 1.1075 year-to-date highs of April 14 would provide bulls with fresh confidence to push higher and the pair could rise up to the next target at around 1.1190 where the 200-week Simple Moving Average (SMA) is situated and likely to provide pushback.

A break and close below the lower high at 1.0830, on the other hand, would bring into the question the strength and validity of the uptrend and could see losses extend down to a confluence of support at 1.0750.

[/s2If]
Join Our Telegram Group