EURUSD exchange rate gains to continue above 1.0690 At 1.0690, there is no change in the short-term positive tilt. Extra gains should be in place for the duo as long as it is above the short-term support line near 1.0690. However, on Friday, the pair returns to the 1.0860 region after their second consecutive session of retreat.
EURUSD Analysis
The Euro keeps gaining ground versus a variety of certain other currencies, reaching new multi-month highs, for instance, against the US dollar, the British Pound, and the Swiss Franc. Whereas other nations are starting to scale back their potential rate rises, persistent, official expectations for a Euro rate increase are supporting the single currency. The expanding interest rate disparity is helping the euro as it rises.
However, with declining yields throughout the curve, the Eurozone bond market is not following these projections for the Eurozone interest rate. In the last two weeks, the yield on the German 10-year Bund has decreased by 45 basis points, while the yield on the Italian 10-year BTP has decreased by about 80 basis points.
This shift has been aided by lower US bond rates, but longer-dated bond yields are being forced downward in accordance with US views that the ECB would have to limit rate increases due to mounting recessionary risks. In the upcoming weeks and months, it will be important to pay close attention to bond rates in the eurozone as well as rate differences with other nations.
The ZEW Economic Sentiment report is the only announcement with any potential to move the markets on the economic docket for the upcoming week, which is very quiet. The two inflation measurements released the following week are final numbers, so they shouldn’t fluctuate significantly from their initial values.
EURUSD Technical Analytics
To allow for a test of the weekly peak at 1.0936, the upswing must now quickly surpass the 2023 high at 1.0929 (January 26). (April 21 2022). The crucial hurdle at 1.1000 the number could be challenged sooner or later with a sustained break over this mark. The longer-term optimistic outlook is unchanged while above the 200-day SMA, which is currently at 1.0309.
Since its low point in late September, the Euro has increased by nearly 14% against the US dollar; nevertheless, additional increases are expected to be modest. The pair is likely to target the high from April 2022 at 1.0937 sooner rather than later.
According to a set of encouraging moving averages, along with a 50-day/200-day golden cross on December 28 and a string of rising lows and elevated highs. The CCI indicator is firmly in overbought area, indicating that the duo is due for a time of consolidation, which could occur over the coming weeks. There is a region of near-term support around 1.0700 and 1.0735.
Trader’s Long and Short positions
According to statistics from retail traders, 30.72 percent of traders are net long, and the short-to-long trader ratio is 2.26 to 1.
The number of traders who are net-long is off 8.37% from yesterday and reduced 41.26% from the previous week, whereas the number of traders who are net-short is off 2.21% from yesterday and increased 41.23% from the previous week.
