Eurusd In Positive Territory

last updated on

Eurusd In Positive Territory

Eur/Usd In Positive Territory Above 1.0700, German Cpi In Focus

EUR/USD is trading in positive territory near the 1.0700 handle on Monday. The DXY is seen as weaker below the 106 handle, which provides support to pairs like the EUR/USD and the GBP/USD.

The EUR/USD is positive for now, but all eyes are now on Wednesday's Fed meeting. There's a very high chance that no change will be made to the interest rate, but investors will be looking for cues about what's ahead.

Eur/Usd Trades Under 1.0780 (200 Sma)

The EUR/USD technical chart on the 4-hour timeline shows that RSI is printing above 70. This is a sign that the EUR/USD is now in overbought territory for the short term.

The nearest resistance for the EUR/USD is seen near the 1.0750 handle, which also coincides with a 38.2% fib retracement from the recent downtrend. If this level is conquered by the EUR bulls, the next stop will be the 1.0780 - 1.0790 zone, where the 200 SMA is present on the H4 chart.

As for the support levels of EUR/USD, the nearest one is 1.0700 which is a round figure and also the 23.6% fib retracement. After these two levels, the next stop for the EUR/USD sellers will be 1.0670 and then the static level at 1.0650.

All of this raises the question of why the greenback is under pressure against the EUR. This is due to the BEA's report, which showed an expansion rate of 1.6% for the US real GDP. Although the reading is positive, it is very weak when compared with a forecast of 2.5%.

Meanwhile, the US stock markets and even the future markets are trading higher. So, that's also a factor that contributes to a weaker greenback.

Now, the EUR/USD will be looking for cues from the upcoming German CPI along with the Fed's meeting scheduled on Wednesday. These two events will either allow the EUR/USD to continue with its bullish trend or change course and drop under the 1.0700 handle.

Trending Stories