The EURUSD pair rises to its highest point since February 2022 due to the continuous selling pressure on the USD.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER 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_level1)]

• EUR/USD climbs to its highest level since February 2022 as the USD selling remains unabated.

The pair currently trades last at 1.12337.

The previous day high was 1.1228 while the previous day low was 1.1128. The daily 38.2% Fib levels comes at 1.1089, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1057, expected to provide support.

The EUR/USD pair builds on this week’s breakout momentum through the previous YTD peak and climbs to its highest level since February 2022, around the 1.1240-1.1245 region during the Asian session on Friday.

The US Dollar (USD) downward trajectory remains uninterrupted for the seventh straight day in the wake of expectations that the Federal Reserve (Fed) will soon end its policy-tightening cycle. In fact, investors now seem convinced that the US central bank will keep rates steady for the rest of the year after the widely anticipated 25 lift-off in July. This led to the recent sharp decline in the US Treasury bond yields and drags the USD to a fresh 15-month low, which, in turn, is seen as a key factor acting as a tailwind for the EUR/USD pair.

In contrast, the minutes of the European Central Bank (ECB) meeting held in June revealed that policymakers remain determined to continue the current hiking cycle beyond July to bring inflation back to target. It is worth recalling that the ECB, in its June economic projections, forecasted that inflation would stay above its 2% target through the end of 2025. This hawkish outlook, to a larger extent, offsets emerging signs of a cooling economy and continues to underpin the shared currency, further lending support to the EUR/USD pair.

That said, the Relative Strength Index (RSI) on the daily chart is already flashing overbought conditions and might hold back bulls from placing fresh bets around the major. Hence, it will be prudent to wait for some near-term consolidation or a modest pullback before positioning for any further appreciating move. Nevertheless, the aforementioned fundamental backdrop suggests that the path of least resistance for the EUR/USD pair is to the downside and any meaningful corrective decline might still be seen as a buying opportunity.

Technical Levels: Supports and Resistances

EURUSD currently trading at 1.1234 at the time of writing. Pair opened at 1.1226 and is trading with a change of 0.07 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0938, 50 SMA 1.0861, 100 SMA @ 1.0841 and 200 SMA @ 1.0638.

The previous day high was 1.1228 while the previous day low was 1.1128. The daily 38.2% Fib levels comes at 1.1089, expected to provide support. Similarly, the daily 61.8% fib level is at 1.1057, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 1.1044, 1.0956, 1.0908
• Pivot resistance is noted at 1.1179, 1.1228, 1.1315

[/s2If]
Download Nehcap EAWe have two EAs that are operational on our LIVE accounts.

1. EA-FIX: Check out the details here. Download EA-FIX . EA-FIX is a non-grid HFT scalper.
2. EA-GROWTH: High quality low dd EA using trend grids. Download EA_GROWTHJoin Our Telegram Group

Share this:

• Facebook
• X

Like this:

Like Loading...