VOT Research Desk
US stock index futures are up between 0.5% and 0.9% so far on Tuesday, signalling an uptick in market sentiment.
The USD may come under fresh selling pressure in the afternoon if Wall Street’s key indexes open noticeably higher, which would pave the way for another leg up in the EURUSD.
For the first time since July, the EURUSD has gained traction and soared above 1.0400. The pair seeks to extend last week’s gains in the wake of Monday’s downward correction as risk flows dominate the financial markets.
Additionally, the short-term technical forecast demonstrates that the bullish bias is still present. The US Dollar was able to hold its own against its main competitors at the start of the week in the lack of significant macroeconomic data releases, and the US Dollar Index rose 0.5% on Monday.
Lael Brainard, vice chair of the US Federal Reserve, suggested that it will soon be appropriate to slow the rate hikes later in the day and restrained the USD’s advances.
EUR/USD Technical Analysis
After finding support near the bottom limit of the ascending regression channel that dates back to early November on Monday, the EURUSD is still trading within it today.
However, the four-hour chart’s Relative Strength Index (RSI) indicator is once again over 70, indicating that there may be another downward correction before the pair attempts to reach new multi-month highs.
On the upswing, the first resistance level lines up with 1.0460.The next level that the EURUSD could aim for is 1.0500 if it rises above that one and validates it as support. Prior to 1.0350 and 1.0300 ,1.0400 forms temporary support .
