EURUSD Technical Analysis – The greenback remains on the backfoot 0 (0)

Fundamental
Overview

The USD weakened across the
board last Friday following the soft US NFP report. The data showed some more labour
market cooling with an increase in the unemployment rate and a decrease in wage
growth. We basically have an economy that is slowing but still growing. The
market seems to be taking it as good news as it still expects a soft landing.

The EUR, on the other hand,
gained last week against the US Dollar mainly because of the risk-on sentiment
as the US data continued to support at least two rate cuts from the Fed but
didn’t send recessionary signals. On the monetary policy front, the ECB members
continue to repeat that they will wait for the data throughout summer before
deciding on a rate cut in September.

EURUSD Technical
Analysis – Daily Timeframe

On the daily chart, we can
see that EURUSD eventually extended the rally above the 1.08 handle and it’s
now targeting the resistance
around the 1.0885 level. That’s where we can expect the sellers to step in to
position for a drop back into the 1.0812 support. The buyers, on the other
hand, will want to see the price breaking higher to increase the bullish bets into
the 1.10 handle next.

EURUSD Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that from a risk management perspective, the buyers will have a better risk
to reward setup around the 1.0812 support where we can also find the trendline for confluence. The sellers, on the other hand,
will want to see the price breaking lower to turn the bias more bearish and position
for a drop into the 1.0727 level next.

EURUSD Technical
Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see more clearly the recent price action with the bounce on the 1.0812 level
and the continuation of the uptrend. Today we get the US CPI and the US Jobless
Claims figures, so we might see a spike either into the 1.0885 resistance or
the trendline. The red lines define the average daily range for today.

Upcoming
Catalysts

Today is the most important day of the week as we get the US CPI and the US
Jobless Claims figures. Tomorrow, we conclude the week with the US PPI and the
University of Michigan Consumer Sentiment survey.

This article was written by Giuseppe Dellamotta at www.forexlive.com.

Go to Forexlive

Dollar a touch softer awaiting the US CPI report later 0 (0)

There is a slight extension to the narrow ranges earlier but it is looking rather one-sided. The greenback is the one dragged lower now in European morning trade, with EUR/USD pushing to a one-month high of 1.0853. The pair is now up 0.2% on the day, with other major currencies also posting roughly similar gains against the dollar.

USD/JPY is down 0.1% to 161.50 while GBP/USD is up 0.2% to 1.2878, helped by a better UK monthly GDP data here. Besides that, USD/CHF is also down 0.2% to 0.8980 and AUD/USD up 0.2% to 0.6760 on the day.

The flows here are quite isolated though, with equities and bonds not really hinting at much. S&P 500 futures remain tepid, down 0.1% on the day. Meanwhile, 10-year Treasury yields are flat at 4.280% currently.

It looks to be some positioning flows as we start to draw closer to the main event later today. It’s all about US data with the CPI report in focus alongside the weekly jobless claims.

This article was written by Justin Low at www.forexlive.com.

Go to Forexlive