EUR/USD is holding above 1.0950 due to US dollar selling. The euro gained momentum after the European Central Bank (ECB) hiked interest rates by 25 basis points to 3.50%, the highest level since 2001. The pair reached an intraday high of 1.09623 and is currently trading around 1.09521.
US retail sales rose 0.30% in May, compared to an estimated -0.20%. Core sales, which exclude automobiles, gasoline, and building materials, rose 0.20%. The NY Fed Empire State manufacturing index jumped to 6.6 in June, surpassing the expected -15.1.
According to the CME Fed watch tool, the probability of a 25 basis points rate hike in July increased to 71.9% from 52.8% a week ago.
The pair is trading above the short-term 21 EMA and 55 EMA, and below the long-term (200 EMA) on the 4-hour chart. Any indicative break above 1.0950 confirms intraday bullishness, with a potential jump to 1.100/1.107. The near-term support is around 1.08800, and a breach below it targets 1.0828/1.0800.
Indicator-wise, the CCI (Commodity Channel Index) and the Directional Movement Index both indicate a bullish trend on the 4-hour chart.
Based on this analysis, it is considered favorable to buy on dips around 1.0900, with a stop loss around 1.0860 and a target price of 1.100.
It is important to note that the forex market is volatile and subject to rapid changes, so it is advisable to conduct further analysis and monitor news and economic events to make informed trading decisions.
US retail sales rose 0.30% in May, compared to an estimated -0.20%. Core sales, which exclude automobiles, gasoline, and building materials, rose 0.20%. The NY Fed Empire State manufacturing index jumped to 6.6 in June, surpassing the expected -15.1.
According to the CME Fed watch tool, the probability of a 25 basis points rate hike in July increased to 71.9% from 52.8% a week ago.
The pair is trading above the short-term 21 EMA and 55 EMA, and below the long-term (200 EMA) on the 4-hour chart. Any indicative break above 1.0950 confirms intraday bullishness, with a potential jump to 1.100/1.107. The near-term support is around 1.08800, and a breach below it targets 1.0828/1.0800.
Indicator-wise, the CCI (Commodity Channel Index) and the Directional Movement Index both indicate a bullish trend on the 4-hour chart.
Based on this analysis, it is considered favorable to buy on dips around 1.0900, with a stop loss around 1.0860 and a target price of 1.100.
It is important to note that the forex market is volatile and subject to rapid changes, so it is advisable to conduct further analysis and monitor news and economic events to make informed trading decisions.