Euro Recouped Its Losses
Dmitriy Gurkovskiy | Jul 12, 2021 06:53AM ET
The major currency pair is rather neutral early in the week but the Euro remains quite confident against the USD. Improved risk attitude made the “greenback” fall earlier and the fact that the 10-year US bond yield rally wakened put additional pressure on the American currency.
This week, the USA is scheduled to publish the latest data on the Retail Sales and the CPI, and this keeps the USD on its toes.
The statistics published last week showed that the Unemployment Claims in the USA went up a little bit. As a result, market players started thinking that the labor market recovery after the pandemic wasn’t quite stable. The US Federal Reserve is carefully monitoring all numbers from the labor market and not going to make any important decisions until the sector is stable and confident. The same applies to inflation.
In the H4 chart, EUR/USD is forming another ascending wave with the target at 1.1956. After testing this level, the instrument may resume falling. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line has broken 0, thus indicating that the correction continues.
As we can see in the H1 chart, the asset is also trading upwards and may soon reach the resistance level at 1.1956. Later, the market may test it and then resume trading downwards with the target at 1.1789. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: after rebounding from 20, its signal line is steadily moving upwards. Later, the line may continue growing towards 80.
Disclaimer: Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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