EURUSD Technical Analysis

Fundamental
Overview

The USD got a boost last
week from the strong US PMIs which lifted Treasury yields and put in
question the rate cut in September. Once the market digested the report and saw
that there was more good news on the growth side than bad news on inflation,
the USD strength faded fast.

The EUR, on the other hand,
continues to benefit from the USD weakness and the pickup in the Eurozone PMIs.
The market scaled back a bit the rate cuts expectations last week following the
strong Eurozone data.

EURUSD Technical
Analysis – Daily Timeframe

On the daily chart, we can
see that EURUSD bounced around the 1.08 handle, and it looks like the buyers
have enough momentum to push the price back into the 1.09 handle. The recent
price action formed what looks like a bullish
flag pattern, so a break above the 1.09 resistance
should give the buyers even more conviction to target the 1.10 handle.

EURUSD Technical
Analysis – 4 hour Timeframe

On the 4 hour chart, we can
see that we’ve been consolidating between the 1.0860 level and the 1.0812
support. The buyers will want to see the price breaking above the 1.0860 level
and the downward trendline
to confirm the bullish flag and pile in for a break above the 1.09 resistance.

The sellers, on the other
hand, will want to see the price breaking below the 1.0812 support to confirm a
reversal and start targeting a drop into the 1.0727 level.

EURUSD Technical Analysis – 1 hour Timeframe

On the 1 hour chart, we can
see that we have a strong resistance at the 1.0860 level where we can find the
confluence of the downward trendline and the recent swing high. The sellers
might step in around these levels with a defined risk above the 1.0860 level to
position for a drop back into the 1.0812 support. The red lines define the average
daily range for today which shows how much the pair is likely to move up
and down.

Upcoming
Catalysts

Tomorrow we get the US Consumer
Confidence report where the focus will likely be on the labour market details. On
Thursday, we will see the Eurozone Unemployment Rate and the latest US Jobless
Claims figures. Finally on Friday, we conclude the week with the Eurozone Flash
CPI and the US PCE reports.

See the video below

This article was written by Giuseppe Dellamotta at www.forexlive.com.


https://www.forexlive.com/technical-analysis/eurusd-technical-analysis-20240527/?utm_source=dlvr.it&utm_medium=blogger