EUR/USD, aiming for levels under 1.0700, keeps a close watch on upcoming US CPI and Eurozone GDP data.- warren

EUR/USD, aiming for levels under 1.0700, keeps a close watch on upcoming US CPI and Eurozone GDP data.

Warren's Trading Titans

warren

The beginning of the new week sees a positive start for the EUR/USD pair during the early Asian trading hours on Monday. The upturn is influenced by the strengthening US dollar sentiment. Although the pair rebounds from the low of 1.0656 recorded last week, it remains constrained below the resistance level of 1.0700. On the 4-hour chart, the Relative Strength Index (RSI) drops below 50, signaling a short-term bearish outlook as EUR/USD descends below the mid-point of the ascending regression channel.

If EUR/USD fails to establish stability above 1.0680 (the mid-point of the ascending channel), sellers are likely to stay active. In such a scenario, the 50-period Simple Moving Average (SMA) may serve as temporary support at 1.0660 before reaching 1.0640 (the 38.2% Fibonacci retracement level of the recent downward trend) and 1.0620 (the lower limit of the ascending channel, along with SMA 100).

On the positive side, resistance levels are situated at 1.0700 (the 50% Fibonacci retracement level), 1.0730 (the upper limit of the ascending channel), and 1.0750 (the 61.8% Fibonacci retracement level).

Last updated: 11/13/2023 07:31

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