EURUSD Technical Analysis | Forexlive

US

• The Fed left interest rates unchanged as
  expected with basically no change to the statement.
• Fed Chair Powell stressed
  once again that they are proceeding carefully as the full effects of policy
  tightening have yet to be felt.
• The recent US Core PCE came
  in line with expectations.
• The labour market is
  starting to show some weakness as Continuing Claims are now
  rising at a fast pace and the NFP data
  last Friday missed across the board.
• The US Consumer
  Confidence fell for the third consecutive month
  although the data beat expectations.
• The US ISM
  Manufacturing PMI last week missed expectations by a big
  margin, followed later on Friday with a disappointing ISM Services PMI,
  although the index remained in expansion.
• The market doesn’t expect the Fed to hike anymore.

EU

• The ECB left interest rates unchanged as
  expected as the central bank has ended its tightening cycle.
• President Lagarde highlighted
  the weakness in the Eurozone economy and reaffirmed that rates will make a
  substantial contribution to curbing inflation.
• The Eurozone CPI missed
  expectations on the headline figures but the Core measure remained unchanged.
  This won’t change the ECB’s stance anyway.
• The labour market remains
  very tight but the unemployment rate last week ticked higher.
• The recent Eurozone PMIs missed
  across the board as the economy continues to struggle.
• The market doesn’t expect the ECB to hike anymore.

EURUSD Technical Analysis –
Daily Timeframe

On the daily chart, we can see that the EURUSD pair
got rejected from the resistance around
the 1.0750 level where we had also the confluence with the
38.2% Fibonacci retracement level.
The price pulled back from overstretched levels into the blue 8 moving average and
bounced back as the buyers stepped in. The bias in the short-term remains
skewed to the upside given the series of higher highs and higher lows and the
moving averages pointing upwards.

EURUSD Technical Analysis –
4 hour Timeframe

On the 4 hour chart, we can see that the price
bounced on a strong support zone around the 1.0670 level where we had the
previous swing high and the 38.2% Fibonacci retracement level for confluence.
The buyers stepped in at the support with a defined risk below it to target the
resistance and eventually aiming for a breakout. The sellers, on the other
hand, will want to see the price breaking below the support to pile in and
target the lows around the 1.05 support.

EURUSD Technical Analysis –
1 hour Timeframe

On the 1 hour chart, we can see that the
price has made a new higher high recently and consolidated a bit around the
previous swing high level. The buyers are likely to increase the bullish bets
around this level with the red 21 moving average for confluence and keep
targeting a break above the resistance. Downside breakouts, on the other hand,
should see more sellers coming into the market.

Upcoming Events

Today we have the US Jobless Claims on the agenda
while tomorrow it will be the time for the University of Michigan Consumer
Sentiment report. The market is likely to focus on the US Jobless Claims given
the recent weakness in the labour market data. Strong readings are likely to
support the USD, while weak figures should keep on weighing on the greenback in
the short-term.