The EUR/USD pair recently found support near the 1.0825 zone after a slight correction from the 1.0950 level. The price has managed to clear a bearish trend line resistance at 1.0860, indicating a potential upside movement. The pair tested the 1.0825 support level and remained above the 200 simple moving average on the 4-hour chart. Currently, it is facing a key resistance near 1.0875, followed by 1.0900 and 1.0920. A clear break above the 1.0920 level could push the pair towards the 1.0950 mark and eventually 1.1000 in the near term.
The 4-hour chart shows that EUR/USD has breached the 100 simple moving average and is testing the 38.2% Fib retracement level of the previous downward move. The pair is in an overall bullish trend, with key support at 1.0845 and 1.0820. A break below 1.0820 could lead to further downside towards 1.0750.
In addition to technical factors, market sentiment is also influenced by economic releases and geopolitical events. The Dallas Fed Manufacturing Business Index for July 2024 is forecasted at -15.0, which could impact the USD and EUR exchange rate. Traders should also keep an eye on crude oil prices, which may continue to decline towards $75.00, affecting risk appetite and currency movements.
Meanwhile, Bitcoin is showing strength and could soon test the $70,000 resistance zone. The cryptocurrency market is also a key player in influencing investor sentiment and risk appetite in the broader financial markets. A breakout above $70,000 could attract more buyers and push the price higher.
The EUR/USD pair is currently in a consolidation phase but has the potential to extend gains towards 1.0950 and 1.1000 levels. Traders should monitor key support and resistance levels, along with market sentiment and economic releases, to make informed trading decisions. Additionally, keeping an eye on Bitcoin and crude oil prices can provide valuable insights into overall market dynamics.
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