EUR/USD is trading near a major area of interest ahead of this week’s potential market catalysts!
Will the pair extend a weeks-long trend in the next few days?
We’re zooming in on EUR/USD’s 4-hour chart!
EUR/USD 4-hour Forex Chart by TradingView
The euro gave back some of its weekly gains against the U.S. dollar as demand for the Greenback picked up after stronger-than-expected core durable goods orders and solid consumer confidence data. U.S. bond demand also rose as traders dialed down their global trade worries.
But with the FOMC meeting minutes coming up, and some ECB officials hinting there’s no rush to cut rates in June, traders may shift their focus back to Fed rate expectations. That could keep pressure on the dollar and give the euro another shot at upside.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Euro and the U.S. dollar, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
EUR/USD has been in an uptrend since mid-May, printing higher highs and higher lows, but the rally just hit a wall at the 1.1400 psychological level and former resistance zone.
The pair is now hanging around 1.1300, a key area that lines up with the Pivot Point and the 38.2% Fibonacci retracement of its latest run-up.
Traders are eyeing this dip as a possible buy-the-pullback opportunity, but it all comes down to how EUR/USD handles the 1.1275 to 1.1300 support zone.
A bounce from here could set the stage for another push toward 1.1400, especially if the pair stays above the 100 SMA and green candlesticks start stacking up.
On the flip side, a clean break below 1.1250 or sustained trading under the trend line could open the door for a drop toward the 1.1150 support area.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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