EURUSD experienced notable gains last week, witnessing a robust price increase that propelled it beyond the 1.070 level. Currently trading at a new high of 1.072, this surge marks the most substantial increase since mid-June. Several factors contributed to the positive momentum in this currency pair.
Impact Factors:
USD Weakness: The general weakness of the USD played a crucial role. The Federal Reserve’s (Fed) shift in tone towards a more accommodative approach, suggesting a potential end to the tightening cycle, contributed to the depreciation of the USD. The decline in US Treasury yields, with 2.5 and 10-year rates dropping to 4.84%, 4.50%, and 4.57%, further pressured the Greenback.
Outlook for EURUSD:
Support and Resistance Levels: On the 1D chart, EURUSD is finding strong support at 1.05, a critical level that, if breached, could lead to a significant price decrease. Conversely, maintaining this level could fuel an upward price trajectory. The currency pair has surpassed the resistance at 1.07, indicating a potential shift in momentum.
Technical Indicators: The Relative Strength Index (RSI) is trending upwards within the bearish zone, suggesting a possible momentum shift and the revival of the uptrend.
Fibonacci Measurements: Using Fibonacci measurements, continued upward momentum may lead to recovery points at 0.5 (1.086) and 0.618 (1.096).
Short-Term Price Levels:
Support Levels: 1.0700, 1.0670, 1.0630.
Resistance Levels: 1.0750, 1.0770, 1.0800.
Overall, both short-term and medium-term indicators point towards the strengthening of the bullish side for EURUSD, emphasizing the potential for further upward movement.
[Note: This summary is based on the information provided and may not cover all aspects of the market dynamics.]