Technical Analysis and Outlook: In this week's trading, the Eurodollar bounced off our Mean Res 1.089 and 1.086, respectively, to our Mean Sup 1.081, with a swift and aggressive rebound back to Mean Res 1.086. On the downside, the currency is prone to hitting the Mean Support level of 1.080 once again and targeting a well-established price level of 1.075.
The euro has edged higher after eurozone CPI was hotter than anticipated. EUR/USD is trading at 1.0848 in the European session, up 0.27% on the day. The inflation rate in the eurozone surprised the markets with a hotter-than-expected release for May. The headline figure rose to 2.6% y/y, up from 2.4% in each of the past two months and higher than the market...
Key factors for EUR/GBP trade next week With a European Central Bank (ECB) decision due next week, a trade in the GBP/EUR could be of interest. Presently, the EUR/GBP is trading at the lowest rate since August of 2022. The divergence in monetary policy between the ECB and the Bank of England (BOE) is what could be driving this weakness in the EUR. E ECB...
The euro has in positive territory on Thursday. EUR/USD is trading at 1.0840 in the North American session, up 0.37% on the day. The week wraps up with eurozone inflation on Friday. The market estimate for May stands at 2.5% y/y/, compared to 2.4% in April. The core inflation rate is expected to tick higher to 2.8% y/y, up from 2.7% in April. In Germany, the...
Consumer price pressures in Germany accelerated in April to 2.4% y/y, which marked the first uptick since December. Eurozone inflation meanwhile persisted at the same level (May preliminary due on Friday), while wages in the region increased in the first quarter. This has created some worries around the disinflation process and the central bank’s prospects for...
The euro is quiet on Wednesday. EUR/USD is trading at 1.0840 in the North American session, down 0.14% on the day. Germany’s inflation rate rose to 2.4% y/y in May, following a 2.2% gain in each of the past two months. The reading was in line with expectations, which explains the euro’s muted reaction. This is the first time in five months that German inflation...
The pair made a strong start to the final week of May, heading towards its first profitable month of the year. This gives it the chance to push for 1.0981, but we are cautious around further gains, as the monetary policy differential is unfavorable. As such, we can see renewed pressure towards the EMA200 (black line) and daily closes would reinstate the bearish...
The euro is drifting on Monday. EUR/USD is down 0.05%, trading at 1.0849 in the North American session at the time of writing. US markets are closed for Memorial Day, which will likely mean a quiet day for the US dollar. In Europe, German Ifo Business Climate stagnated in May and was steady at 89.3. This unchanged from the downwardly revised 89.3 in April and...
Technical Analysis and Outlook: The Eurodollar bounced off last week's established Mean Resistance level of 1.089 and reached our specified lower target of the Mean Support level of 1.082. The likelihood of revisiting the Mean Resistance level of 1.089 and reaching the Inner Currency Rally level of 1.091 is slim. On the downside, the currency is prone to hit the...
Technical Analysis and Outlook: During this week's trading session, the Eurodollar made a spectacular surge on the upside to our Inner Currency Rally 1.084 and a lot more. Current market conditions suggest that the Eurodollar may continue upward momentum to complete our Inner Currency Rally 1.091 via the newly created Mean Res 1.089. On the downside, the currency...
The euro has posted slight losses on Friday. EUR/USD is down 0.28%, trading at 1.0837 in the North American session at the time of writing. The April inflation report showed that headline inflation remained steady at 2.4% y/y, holding at its lowest level in almost three years. Services inflation and energy prices declined, while food, alcohol and tobacco prices...
Wednesday’s US CPI report showed a moderation in price pressures in April, following months of persistence, with headline inflation easing to 3.4% y/y and core to 3.6% y/y. Along with the miss in retail sales, markets strengthened their pricing for two rate cuts this year by the Fed, staring in September. The greenback fell as a result, sending EURUSD to the...
Technical Analysis and Outlook: During this week's trading session, the Eurodollar fluctuated around our significant Mean resistance level of 1.080. There are projections that the currency may experience an upward surge and complete the Inner Currency Rally of 1.084 before undergoing a downward transition to the Mean Support level mark of 1.074 and possibly...
The British pound is showing limited movement on Thursday. GBP/USD is up 0.15%, trading at 1.2515 in the North American session at the time of writing. The Bank of England kept the cash rate unchanged at 5.25% for a sixth straight time in a widely expected move. The British pound dropped slightly after the announcement but then recovered. The breakdown of the...
Technical Analysis and Outlook: The Eurodollar experienced significant volatility during this week's trading session, with an upward movement that surpassed our Mean Resistance level at 1.075. As a result, a new resistance mark has been established at 1.080. However, it is projected that the currency will experience a downward transition to the Mean Support level...
Coming up: BOE's rate decision week Morgan Stanley has asserted that the Bank of England might still opt for an interest rate cut in the coming week, a stance that stands out amidst dwindling market confidence in such a move. Morgan Stanley’s opinion diverges notably from the consensus, which suggests an initial rate cut by the BOE in September. Backing Morgan...
Here I have EUR/USD on the 4Hr Chart! Since the LOW on Apr' 16th, Price has been traveling in what looks to be an Ascending Channel! Price today was unable to make a NEW HIGH to give us another test of the Rising Resistance and instead gave us quite the drop out of the Ascending Channel! With this break, I believe multiple confirmations are pointing to this...
The pair has managed to stage a rebound from its 2024 lows and reacts positively to today’s preliminary data from Eurozone, which showed Q1 GDP expansion and persistence in headline inflation. As such, the common currency continues its effort to surpass the pivotal resistance confluence, provided by the EMA200 and the 38.2% Fibonacci of the March-April slump....