The surge in EURUSD at a rate of 1.09337 was limited after the European Central Bank’s interest rate increase and the bullish statements made by the central bankers.
…
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 rally curtailed following the ECB rate hike and hawkish remarks from central bankers.
The pair currently trades last at 1.09337.
The previous day high was 1.0953 while the previous day low was 1.0804. The daily 38.2% Fib levels comes at 1.0896, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0861, expected to provide support.
EUR/USD rally stalled in the aftermath of the European Central Bank (ECB) rate hike, trimming some of its previous day’s gains amidst mixed market sentiment. Following the Federal Reserve (Fed) and the ECB’s decisions, central bank speakers are grabbing the most headlines, amidst the lack of news, besides Eurozone (EU) inflation. At the time of writing, the EUR/USD is trading at 1.0920, down 0.23%.
Market participants’ sentiment is mixed, as shown by US equities. The latest round of economic data from the United States (US showed an improvement in Consumer Sentiment, as revealed by the University of Michigan (UoM) at 68.0 vs. May’s Final 64.9. Regarding inflation expectations for a one-year period, they were downward revised from May 4.2%, while June data came at 3.3%.
The EUR/USD weakened amidst a raft of Federal Reserve and European Central Bank officials’ commentary, with postures leaning toward the hawkish side of monetary policy. It should be said the American Dollar (USD) is showing signs of strength, as the US Dollar Index (DXY) edges up 0.21%, at 102.364.
In the Eurozone (EU) front, inflation data slowed down as expected to 6.1% YoY in May, below April’s 7% reading. Meanwhile, two ECB central bankers, Mario Centeno and Pierre Wunsch, delivered hawkish remarks, suggesting that more rate hikes are needed. Mario Centeno added that “the risk of interest rates rising again” exists if prices do not slow. Meanwhile, Pierre Wunsch said, “ECB could hike rates again in September unless there is a substantial drop in core inflation.”
Across the pond, Federal Reserve officials, although moderated in June’s FOMC meeting, are struck with a hawkish stance after the decision. Richmond Fed President Thomas Barkin said that he’s “comfortable doing more” if inflation does note recedes. Later, Fed Governor Christopher Waller later added that slow progress on inflation “will probably require some more tightening.”
The EUR/USD retraced some of its weekly gains. The Fed and ECB stances are on the table, and with both central banks headed for 50 bps of further tightening, it could spur some consolidation in the EUR/USD.
Eurozone docket: It would feature German May PPI, EU’s General Council meeting, June’s Consumer Confidence Flash, and GDP figures in Spain, alongside S&P Global PMIs for Spain, Germany, France, and the bloc.
US economic agenda: Fed speakers, housing market data, and S&P Global PMIs.
From a technical perspective, the EUR/USD remains upward biased, set to test the 1.1000 figure. The daily Exponential Moving Averages (EMAs) are well located below the exchange rate, suggesting further upside is expected. Still, the three-day Rate of Change (RoC) portrays buyers are losing momentum, and the Relative Strength Index (RSI) indicator, remains in bullish territory but shifted flat. Upside risks lie at 1.1000, followed by the YTD high at 1.1095. Contrarily, a drop below 1.0900 could expose the 50-day EMA at 11.0820, ahead of the confluence of the 20-day EMA and June’s 15 daily low of 1.0803/05
Technical Levels: Supports and Resistances
EURUSD currently trading at 1.0932 at the time of writing. Pair opened at 1.0945 and is trading with a change of -0.12 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 1.0932 |
| 1 | Today Daily Change | -0.0013 |
| 2 | Today Daily Change % | -0.1200 |
| 3 | Today daily open | 1.0945 |
The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.0757, 50 SMA 1.0878, 100 SMA @ 1.0806 and 200 SMA @ 1.0538.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 1.0757 |
| 1 | Daily SMA50 | 1.0878 |
| 2 | Daily SMA100 | 1.0806 |
| 3 | Daily SMA200 | 1.0538 |
The previous day high was 1.0953 while the previous day low was 1.0804. The daily 38.2% Fib levels comes at 1.0896, expected to provide support. Similarly, the daily 61.8% fib level is at 1.0861, expected to provide support.
Note the levels of interest below:
- Pivot support is noted at 1.0848, 1.0752, 1.07
- Pivot resistance is noted at 1.0997, 1.1049, 1.1146
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 1.0953 |
| Previous Daily Low | 1.0804 |
| Previous Weekly High | 1.0787 |
| Previous Weekly Low | 1.0667 |
| Previous Monthly High | 1.1092 |
| Previous Monthly Low | 1.0635 |
| Daily Fibonacci 38.2% | 1.0896 |
| Daily Fibonacci 61.8% | 1.0861 |
| Daily Pivot Point S1 | 1.0848 |
| Daily Pivot Point S2 | 1.0752 |
| Daily Pivot Point S3 | 1.0700 |
| Daily Pivot Point R1 | 1.0997 |
| Daily Pivot Point R2 | 1.1049 |
| Daily Pivot Point R3 | 1.1146 |
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
