EUR/USD Takes A Breather
Andrey Goilov | Jun 27, 2022 08:36AM ET
The major currency pair is neutral early in the week – the asset is trading at 1.0567. EUR/USD is barely moving – all comments left by the US Fed Chairman Jerome Powell last week have already been included in prices. Now it’s time to take a break and consolidate.
The Fed remains a fervent supporter of the idea of continuing to continue raising the benchmark interest rate – huge hikes and no pauses. Monetary policymakers fear recession risks and complications in the labor market but consider fighting inflation a priority. Anyhow, all fiscal moves of the regulator are clear and transparent, which is de-stressing the market a little bit. The labor market numbers from the US will be published on 8 July, so there is time to consolidate and revise mid-term priorities.
h2 Technical Outlook - EUR/USD/h2In the H4 chart, EUR/USD is still correcting upwards after completing the previous descending wave; right now, the pair is forming the fifth structure of this correction. Possibly, today the asset may grow to reach 1.0620 at least and then resume trading downwards with the target at 1.0343. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is growing towards 0. Later, the line may rebound from this level and resume falling to update the lows.
As we can see in the H1 chart, EUR/USD is consolidating around 1.0550. Today, the pair may continue trading upwards to reach 1.0620 and then start another decline with the target at 1.0480. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after breaking 50 upwards, its signal line is heading 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.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.