...

EURUSD Market Analysis – Bulls Could Target 1.07

FxNews—The EUR/USD pair has been on an upward trend, reaching 1.0650 early Thursday. Despite the RSI indicator suggesting the pair is nearing an overbought condition, investors might overlook this if US inflation data is softer than expected.

US Dollar Slides as Fed Signals Softer Stance

Mid-week market dynamics were primarily influenced by risk flows, with the US Dollar struggling to maintain its position. Furthermore, dovish remarks from Federal Reserve (Fed) officials decreased US Treasury bond yields, putting additional pressure on the currency.

This week, the Euro (EUR) has shown strength against major currencies, notably the US Dollar.

EURUSD Market Analysis - Bulls Could Target 1.07
EURUSD Market Analysis – Bulls Could Target 1.07

As we head into Thursday, US stock index futures are trading positively, indicating a buoyant market sentiment.

Later in the day, market participants will closely monitor the release of the September US Consumer Price Index (CPI) data. The expectation is for both the CPI and the Core CPI (which excludes volatile food and energy prices) to increase by 0.3% monthly.

EURUSD Market Analysis - Bulls Could Target 1.07
EURUSD Market Analysis – Bulls Could Target 1.07

According to the CME Group FedWatch Tool, markets predict a 72% chance that the Fed will maintain the current policy rate this year. If the monthly Core CPI is weaker than anticipated, dovish Fed bets could continue influencing market activity.

This could extend the weekly rally in US stocks and further weaken the USD. Conversely, a robust Core CPI reading of 0.5% or above could trigger a correction in the USD and cause EUR/USD to lose some of its weekly gains.

EURUSD Tests Key Resistance Level at 1.064

The EUR/USD pair is testing a significant resistance level at 1.064. This is part of a broader trend, with the currency pair consistently trading within a rising channel. From a technical perspective, the EURUSD pair also hovers above the Ichimoku cloud. This is generally seen as a bullish signal, indicating potential for further upward movement.

EURUSD Market Analysis - Bulls Could Target 1.07
EURUSD Market Analysis – Bulls Could Target 1.07

Looking ahead, several vital factors could influence the direction of this currency pair. One of these is the upcoming US inflation data release. If this data is softer than expected, the EURUSD pair could break through the 1.064 resistance level.

In such a scenario, the pair’s next target would be the 1.07 resistance level. This would represent a significant milestone and could open up further upside potential.

Latest Posts

Gold Exceeded $2665: Now Overbought!

Gold exceeded $2665 resistance. However, robust buying pressure made...

USDMXN Breaks Above 20.53: Key Levels and Analysis

USDMXN breaks above 20.53 resistance in continuation of its...

EURJPY Bounced From 162.4: A Bullish Signal

EURJPY bounced from 162.4 support, resuming its bullish trajectory....

Bullish Symmetrical Triangle Signals NATGAS Breakout

NATGAS trades sideways in a low-momentum market inside the...

Crude Oil Holds at $72.8 After Initial Price Dip

Crude Oil price dipped from $75.24, testing the %50.0...

Gold Exceeded $2665: Now Overbought!

Gold exceeded $2665 resistance. However, robust buying pressure made...

Bullish Symmetrical Triangle Signals NATGAS Breakout

NATGAS trades sideways in a low-momentum market inside the...

Crude Oil Holds at $72.8 After Initial Price Dip

Crude Oil price dipped from $75.24, testing the %50.0...

Gold Stays Below $2665 Ahead of US Economic Data

On Monday, the price of gold remained below $2,665...

US Gasoline Futures Hit $2.07 Amid Oil Surge Amid Oil Surge

Gasoline futures in the US have climbed past $2.03...

NATGAS Dips 14% Amid Low Storage Draws

Natural gas prices in the U.S. fell sharply by...

WTI Crude Slips From $74 as Dollar Strengthens

Crude oil prices for West Texas Intermediate (WTI) dipped...

NATGAS is Hit $4 As the Year Ends

NATGAS hit $4.0, trading in a robust uptrend. The...