EUR/USD Rides High in Market Momentum

Fundamental Analysis: the recent CPI news has had a significant impact on the DXY, leading to a notable distribution sentiment among investors. However, despite this development, inflation rates in the European zone have not decreased, remaining at 5.5%. In response, policymakers might adopt a hawkish approach and maintain interest rates to curb aggregate demand. Although the GDP growth rate is still negative at -0.1%, it may not be sufficient to address the current economic challenges. Consequently, the market has experienced a redistribution of $ , prompting investors to explore alternative assets offering higher returns.

Technical Analysis: after price made a huge bullish structure, there is evidence of a substantial and inefficient imbalance in the price structure. This suggests that the price may continue its bullish trajectory at either a premium or discount level. I considered both scenario for EUR/USD.

Targets for retracements: 1.11360, 1.11 ( please consider it with lower risk)

Targets: 1.12344, 1.13736

EURUSD

Comment:

One of the retracement TP has almost been reached.