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EURUSD to continue climb?

EURUSD to continue climb?

 

  • EUR/USD is near four-week high, sixth daily gain possible?
     
  • Germany's exports fell, but EUR/USD closed positive
     
  • French election's left-wing win relieved EUR/USD
     
  • US inflation data due Thursday could trigger volatility

 

The EUR/USD pair may be on track for its sixth consecutive daily gain as it trades near its four-week high. Despite Germany's lower export reading (-3.6% actual vs. +1.7% previous), the EUR/USD managed to close in positive territory yesterday.
 

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The second round of the French parliamentary election has also influenced the EUR/USD. The unexpected victory of the left-wing New Popular Front provided some relief.

On the macroeconomic front, investors are anticipating 1-2 interest rate cuts by the ECB this year, which will heavily depend on consumer price dynamics.
 

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Markets are now bracing for key data releases in the United States. The core and headline US inflation readings are expected to reach 3.4% YoY and 3.3% YoY, respectively.
 

Significant deviations from these estimates could lead to higher levels of volatility.

 

From a technical perspective…

The EUR/USD is currently trading above the major simple moving averages (21-, 50-, and 100-period SMAs), suggesting a strong bullish trend in the short- and medium-term.

The relative strength index is in the neutral zone (<30 – oversold; >70 – overbought).

Potential resistance levels:

  • 1.08450 – 1st pivot point
     
  • 1.08526 – 1-month high
     

Potential support levels:

  • 1.08027 – 1st pivot point
     
  • 1.07950 – 100-period SMA

     
polygon

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