Technical Analysis – EURUSD gains on soft CPI, Fed and ECB decisions in sight
June 13, 2023 1:26 pm
EURUSD had been repeatedly rejected just shy of the 1.0800 region in the past few days. However, a softer-than-expected US CPI print released earlier today enabled the pair to cross above that tough barrier, but bulls should not get excited just yet.
The momentum indicators currently suggest that bullish forces are strengthening near their overbought zones. Specifically, the MACD jumped above its red signal line to its highest level since April 27, while the RSI has eased slightly below its 70-oberbought mark.
If the positive momentum intensifies further, the May resistance of 1.0830 could prove to be the first obstacle for buyers to clear. Surpassing that zone, the price could advance towards 1.0848 before the May resistance of 1.0903 comes under examination. Even higher, the 1.0940 support region could serve as resistance in the future.
Alternatively, bearish actions could send the price to test the previous resistance of 1.0785. Diving lower, the pair may encounter support at 1.0732, which lies close to the 50-period simple moving average (SMA). A violation of that territory could pave the way for the 1.0667 hurdle.
In brief, a slightly lower than expected US CPI figure helped EURUSD post some gains ahead of the crucial FOMC and ECB rate decisions. Nevertheless, the price could experience a pullback as it tested its upper Bollinger band, while the short-term oscillators approached overbought conditions.
EURUSD had been repeatedly rejected just shy of the 1.0800 region in the past few days. However, a softer-than-expected US CPI print released earlier today enabled the pair to cross above that tough barrier, but bulls should not get excited just yet.
The momentum indicators currently suggest that bullish forces are strengthening near their overbought zones. Specifically, the MACD jumped above its red signal line to its highest level since April 27, while the RSI has eased slightly below its 70-oberbought mark.
If the positive momentum intensifies further, the May resistance of 1.0830 could prove to be the first obstacle for buyers to clear. Surpassing that zone, the price could advance towards 1.0848 before the May resistance of 1.0903 comes under examination. Even higher, the 1.0940 support region could serve as resistance in the future.
Alternatively, bearish actions could send the price to test the previous resistance of 1.0785. Diving lower, the pair may encounter support at 1.0732, which lies close to the 50-period simple moving average (SMA). A violation of that territory could pave the way for the 1.0667 hurdle.
In brief, a slightly lower than expected US CPI figure helped EURUSD post some gains ahead of the crucial FOMC and ECB rate decisions. Nevertheless, the price could experience a pullback as it tested its upper Bollinger band, while the short-term oscillators approached overbought conditions.
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