EUR/USD has had a mixed start to what is setting up to be a blockbuster week for markets in general. The Euro lost ground in the Asian session before a rebound ahead of the European open and continued strength since leaves the pair trading at 1.0775.
Looking at the Dollar Index (DXY) and the currency strength chart above we can see the US Dollar is currently hovering in the middle of the pack with my expectation that the Dollar will hold the high ground ahead of tomorrow's US CPI release. EUR/USD is likely to remain at the mercy of the DXY until markets digest the data out this week which could provide a clearer direction for the pair as we head toward Q3. A hot CPI print from the US tomorrow could lend support to the greenback and push EUR/USD lower toward last week’s lows sub-1.0700.
European Central Bank (ECB) policymakers have maintained their hawkish rhetoric while markets continue to price in a pause from the Federal Reserve this week with a hike seen more probable in the July meeting. The fundamental dynamics at play in EUR/USD make the pair an interesting one at present with further upside favored as the Fed is expected to pause while the ECB continues to lag following a late start to its hiking cycle. Is Thursdays rally the start of the next leg to the upside or will we see a retest of the 1.0500 handle?
EURUSD SELL 1.0765-1.0775 💯💯
✅𝖳𝖯1 1.0715
✅𝖳𝖯2 1.0665
🛑𝖲𝖫 1.0800
Looking at the Dollar Index (DXY) and the currency strength chart above we can see the US Dollar is currently hovering in the middle of the pack with my expectation that the Dollar will hold the high ground ahead of tomorrow's US CPI release. EUR/USD is likely to remain at the mercy of the DXY until markets digest the data out this week which could provide a clearer direction for the pair as we head toward Q3. A hot CPI print from the US tomorrow could lend support to the greenback and push EUR/USD lower toward last week’s lows sub-1.0700.
European Central Bank (ECB) policymakers have maintained their hawkish rhetoric while markets continue to price in a pause from the Federal Reserve this week with a hike seen more probable in the July meeting. The fundamental dynamics at play in EUR/USD make the pair an interesting one at present with further upside favored as the Fed is expected to pause while the ECB continues to lag following a late start to its hiking cycle. Is Thursdays rally the start of the next leg to the upside or will we see a retest of the 1.0500 handle?
EURUSD SELL 1.0765-1.0775 💯💯
✅𝖳𝖯1 1.0715
✅𝖳𝖯2 1.0665
🛑𝖲𝖫 1.0800
