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EURUSD Technical Analysis: Consolidation Phase Ahead?

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FxNews – The euro rose from 1.060 against the U.S. dollar and traded at about 1.068 when writing. Currently, the EURUSD pair hovers slightly below the 50 EMA and the 23.6% Fibonacci resistance level, the 1.07 mark. The uptick momentum seems weak when looking at the bullish candlesticks on the 4-hour chart.

EURUSD Technical Analysis: Consolidation Phase Ahead

The candle bodies are small, and bearish long-wick and doji candles are seen among the bullish candles. This can be interpreted as the new bullish wave is weak and could be considered a consolidation phase.

EURUSD Technical Analysis - Consolidation Phase Ahead

EURUSD Technical Analysis – Consolidation Phase Ahead

On the other hand, the technical indicators are bullish, with the relative strength index flipping above the 50 level and the awesome oscillator bars turning green, trying to close the signal line from below. Regarding the trend status, the standard deviation indicator value is 0.002, which is low and does not promise strong determination from European buyers.

Therefore, from a technical perspective, the primary trend is bullish because the price is below the Ichimoku cloud and the 50 EMA at the 1.07 area. If the EURUSD price remains below this level, the downtrend will likely continue and initially target 1.06, this week’s lower lows, followed by the lower band of the bearish trendline.

Conversely, the bear market is paused if the price crosses and stabilizes itself above the 1.072 resistance.

Fundamental Aspects of EURUSD: DAX 40 Rises

Bloomberg—On Thursday, the DAX 40 index in Frankfurt rose by 0.4%, reaching 17,845 points. This rise came as investors analyzed comments from central bank leaders, looking for hints about future global financial policies. In the technology sector, there was growing excitement about Netflix’s soon-to-be-released earnings report, marking the beginning of Big Tech’s earnings season in the US.

Regarding financial policies, ECB’s Mario Centeno stated that the central bank’s decisions would focus on Europe’s economic conditions rather than following the US’s lead. Meanwhile, the Bank of England’s Governor, Andrew Bailey, pointed out that inflation in the UK and Europe is less intense compared to the US. At the same time, Loretta Mester, head of the Federal Reserve Bank of Cleveland, advised caution in making quick changes to US interest rates.

  • 18 April 2024
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