- EURUSD starts a crucial week on the right foot, rising 0.82%.
- EUR/USD traders are keeping an eye on the EU inflation data and the ECB’s monetary policy decision.
The EUR/USD extended gains to two straight days after hitting a new 20-year low below par. Since then, the EURUSD pair has not looked back and hit a fresh 2-week high near 1.0200 before settling around current price levels. EURUSD is trading at 1.0167 at the time of writing.
The discourse of the financial markets has not changed. Concerns about rising inflation, central bank tightening and recession fears remain on investors’ minds. However, global equities rose on positive results from US stocks, indicating that companies are bracing for further Fed tightening, while investors shrugged off the coronavirus outbreak in China. , which threatened to keep the supply chain disrupted and consequently higher prices. That said, the USD is down 0.73%, underpinning EUR/USD, which will come under pressure from EU inflation data, the ECB’s monetary policy decision and US S&P Global PMIs. end of the week.
EURUSD Price Technical Outlook
EUR/USD buyers have entered the scene, although the pair remains in a bearish bias, with the daily moving averages (DMAs) well above the exchange rate. The ongoing bullish correction is attributed to EUR/USD shorts taking profits, causing a rally to a fresh 11-day high above 1.0200.
If EURUSD buyers remain in control, the currency’s first resistance would be at 1.0200. If the latter is broken, the daily high of July 6 at 1.0276 will be exposed, followed by the 20-day EMA at 1.0310.
On the other hand, the first support of the EUR/USD would be 1.0100. If it breaks below, the new 20-year low at 0.9952 will be exposed. Once cleared, the next challenge for EUR/USD sellers will be the December 2002 lows around 0.9859.
Source: Fx Street
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