EUR/USD advances toward 1.0750 amid US debt deal optimism
Fundamental technical analysis:
The Relative Strength Index (RSI) continues to be present in the middle. The average price is still declining, with the 34 EMA and 89 EMA staying steady, creating a consistent downtrend over a period of time. Additionally, the flag pattern has begun to take shape.
Market overview:
On Friday, EUR/USD started to rise after a four-day decline that resulted in the pair reaching its lowest level in over two months near 1.0700. The near-term technical outlook does not yet show a bullish inclination in the short term, and the next directional move may be influenced by the Personal Consumption Expenditures (PCE) Price Index data from the US later in the day.
The US Dollar (USD) was boosted on Thursday by positive macroeconomic data releases from the US, which revived expectations for one more Federal Reserve (Fed) rate increase in June. The US Bureau of Economic Analysis revised the first-quarter annualized Gross Domestic Product growth to 1.3% from 1.15 in the initial estimate, and the weekly Initial Jobless Claims came in below the market expectation of 245,000 at 229,000.
Fundamental technical analysis:
The Relative Strength Index (RSI) continues to be present in the middle. The average price is still declining, with the 34 EMA and 89 EMA staying steady, creating a consistent downtrend over a period of time. Additionally, the flag pattern has begun to take shape.
Market overview:
On Friday, EUR/USD started to rise after a four-day decline that resulted in the pair reaching its lowest level in over two months near 1.0700. The near-term technical outlook does not yet show a bullish inclination in the short term, and the next directional move may be influenced by the Personal Consumption Expenditures (PCE) Price Index data from the US later in the day.
The US Dollar (USD) was boosted on Thursday by positive macroeconomic data releases from the US, which revived expectations for one more Federal Reserve (Fed) rate increase in June. The US Bureau of Economic Analysis revised the first-quarter annualized Gross Domestic Product growth to 1.3% from 1.15 in the initial estimate, and the weekly Initial Jobless Claims came in below the market expectation of 245,000 at 229,000.
Comment:
Strategists at "JP Morgan Chase" and "Morgan Stanley" warned that the impasse threatens the prospects of stock markets, while dealers are centers in swap contracts and options for major currencies to hedge their portfolios.
Trade active:
- European stock exchanges ended the first day of the week with losses, despite the initial agreement to raise the US debt ceiling, with the return of fears that the Federal Reserve will raise interest rates during its next meeting.
Trade closed: stop reached
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