During European trading hours, the EURUSD rises above 1.0750, kicking out the week on a positive note. The technical picture for the pair points to potential near-term gains.But investors are probably going to stay away until this week’s major risk events.
Investors can choose not to commit to the pair’s continuous ascent.
The US Dollar (USD) struggles to find demand early on Monday due to the risk-positive market environment. Which helps EURUSD. The Euro Stocks 50 Index is up about 1%.While in the early European session. US stock index futures are also holding onto small daily gains.
data on inflation from On Tuesday, the US will be made available. In contrast to the 4.9% increase reported in April. The Consumer Price Index (CPI) is predicted to climb 4.1% annually. The announcements of policy by the Federal Reserve and the European Central Bank (ECB). On Wednesday and Thursday, respectively, may increase. Market volatility in the second half of the week.
Since there won’t be any high-level macroeconomic data releases. That could affect the currency’s value the USD could stay on the back foot if Wall Street’s major indexes pick up bullish momentum after the opening bell.
EURUSD Technical Analysis
The four-hour chart’s Relative Strength Index (RSI) signal rose over 60, and the 20-period Simple Moving Average (SMA) achieved a bullish crossover. Bullish momentum has been building, as evidenced by the bullish cross with the 100-period SMA.
On the upside, the psychological level and Fibonacci 38.2% retracement of the most recent downturn, or 1.0800/1.0810, align as the first resistance area before 1.0840 (the 200-period SMA) and 1.0860 (the Fibonacci 50% retracement).
A prolonged decline below 1.0720 (50-period SMA) and 1.0700 (psychological level, ascending trend line) could be seen if EURUSD drops below 1.0750 (100-period SMA, Fibonacci 23.6% retracement).
