Friday, EUR/USD plunged to 1.0855 low after a neutral EU data giving room for U.S Index to climb towards 99.57 high. Later on U.S released an increased Retails Sales and CPI, not up to expectations which forced analysts to re-consider June Fed Hike odds with a probability placed at 74%, decreased by almost 10%. As a result, U.S Index took a dip and bottomed at 99.02, giving a chance for EUR/USD to reverse losses with +79-pips price action and 1.0934 high.
Monday trading session, the pair added only 1-pip since Friday's high (1.0935) with 13-pips movement, but currently US Dollar Index is showing weakness which should give the opportunity for EUR/USD and break another high record for today taking into consideration that U.S Administration is sending wallop signals with recent event. The pair is currently trading 1.0930 intraday, still above its 7-EMA (D1) at 1.0908.
Economic Calendar has zero value for EU and U.S Data, which leave EUR/USD action for technical as fundamentals are absent today.
Technical Overview:
Trend: Bullish Sideways
Pivot : 1.0910
Resistance levels: R1 1.0937, R2 1.0952, R3 1.0966, R4 1.0985 (H1)
Support levels: S1 1.0919, S2 1.0909, S3 1.0884, S4 1.0856 (H1)
Comment: The market still favors additional rallies for EUR/USD especially the mentioned above fundamentals on U.S Dollar. long positions above hourly pivot (1.0910) stretches bullish waves seeing R2&R3 as target. A penetration for S1 level will increase selloffs and wash towards S2 as first station, and S3 as second destination. Keep an eye on U.S Index levels.
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