💡 EURUSD: Strong increase after many accumulation sessions
Following several sessions of accumulation, EURUSD has experienced a robust rebound in the recent session, currently exceeding the targeted price range near the upper boundary of the ascending price channel. Profitable buying positions have been secured, yet the price momentum remains robust, suggesting a potential continuation of the upward trend. Traders may consider selling during price adjustments or buying at pullback levels.
Comment:
Although the euro zone may fall into recession, the European Central Bank will keep interest rates stable until next year and the first rate cut is not due at least July 2024. Last month, after raising interest rates at 10 consecutive meetings, the ECB maintained the deposit interest rate at a record high of 4.00% and will not increase interest rates in the current cycle. However, the financial market still expects the ECB to cut interest rates in April next year.
Comment:
We can see EUR/USD broke out to the upside and fluctuates below the 1.0900 mark. Additionally, the MACD histogram bar and double line widened after forming a golden cross near the zero axis on the H4 chart, and the price is also far away from the 48-hour moving average.
