Eurusd Eyes Next Resistance

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Eurusd Eyes Next Resistance

Eur/Usd Trades At 1.0830 With Eyes On 1.0900

The EUR/USD continues to close in green for the 6th day in a row as it trades around the 1.0830 handle on Tuesday. Now that the French elections are over, the uncertainty that was weighing down the Euro is also gone. So, that's also a factor that has enabled the EUR/USD to truly shine in the face of dollar weakness.

Any more upside in the EUR/USD pair will allow it to test the 1.0845 resistance and then the 1.0852, which is also a key weekly resistance.

Eur/Usd Eyes 1.0850 &Amp;Amp; 1.0900 As Next Targets

If the EUR/USD can manage to clear these two levels, it will bring the next target in sight which includes 1.0981 and then 1.0998. Beyond these 2 levels, the next psychological level is the 1.1000 handle.

Another scenario is the bears taking control of the EUR/USD pair which will send it lower towards the 1.0666 and then the 1.0650 handle. Beyond these, another key support is located at 1.0600 which is also the lowest level of 2024.

The bigger picture is that EUR/USD can secure additional gains as long as the pair can maintain its price action above the 200 SMA (D1).

The H4 chart suggests that the bullish impulse will continue in the short to medium term. The first resistance level is near 1.0845, while the next one is at 1.0852. Similarly, the support levels on the H4 chart are around 1.0784, 1.0710, and then 1.0666.

Meanwhile, the DXY appears to be gaining some ground on Monday with similar stuff seen in the US bond yields. However, the DXY will remain directionless ahead of the CPI and Powell's testimony.

As for the interest rate policy, the ECB is of the view that further rate cuts should only happen after the summer season. On the other hand, the Fed is expected to deliver 1-2 rate cuts this year but the Fed is only projecting a single rate cut in 2024.

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