Since the last trading session as price broke out of its bullish channel, EUR/USD has continued to exhibit bullish tendencies by consolidating between 1.08 and 1.087. Despite a temporary pause in Federal Reserve rate hikes, the Euro remains robust against the dollar, bolstered by lower CPI indications. Today's Powell speech will be very crucial for the pair.
Technical analysis: EUR/USD was persistently testing the 1.08600 resistance within within a consolidation channel. As it just broke and closed above it, the pair's resilience suggests a possible bullish continuation, a push towards higher levels, potentially testing the 1.0900 area. Although the price does look bullish, it still heavily depends on what the US dollar will do this week. Overall, as the US is possibly entering a stagflation phase combined with the inevitable rate cuts coming in the coming months, the US will face a very tough time up ahead. Keeping that in mind, usd pairs are expected to push higher if that scenario plays out. Still, this week we have NFP reports and Powell's 2 day speech among other important reports.
Our position: We are closely watching for a retest and confirmation above the current resistance. A confirmed move above this threshold would solidify our bullish outlook and prompt us to consider long entries, especially with key reports looming which could further influence market sentiment and direction.
Technical analysis: EUR/USD was persistently testing the 1.08600 resistance within within a consolidation channel. As it just broke and closed above it, the pair's resilience suggests a possible bullish continuation, a push towards higher levels, potentially testing the 1.0900 area. Although the price does look bullish, it still heavily depends on what the US dollar will do this week. Overall, as the US is possibly entering a stagflation phase combined with the inevitable rate cuts coming in the coming months, the US will face a very tough time up ahead. Keeping that in mind, usd pairs are expected to push higher if that scenario plays out. Still, this week we have NFP reports and Powell's 2 day speech among other important reports.
Our position: We are closely watching for a retest and confirmation above the current resistance. A confirmed move above this threshold would solidify our bullish outlook and prompt us to consider long entries, especially with key reports looming which could further influence market sentiment and direction.