Quek Ser Leang, Market Strategist at UOB Group, comments on recent price developments and prospects of the EUR/USD pair.
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Although EUR/USD rose above the cloud resistance and reached 1.1010, it then fell again. However, EUR/USD did not break below 1.0800 (last week’s low of 1.0832). EUR/USD turned around strongly from 1.0832, and yesterday (July 12, 2023), jumped to a new year-to-date high of 1.1140.
The weekly MACD appears to be about to cross into positive territory. This bodes well for further EUR/USD strength. On the weekly chart, there are hardly any significant resistance levels until the 2022 high at 1.1495. The top of the weekly exponential moving average envelope is also near 1.1495. However, it remains to be seen if the EUR/USD has enough momentum to reach this solid resistance level in the coming months. On the daily chart, the EUR/USD pair has already broken above the top of the exponential moving average.
This time, to maintain momentum, EUR/USD needs to stay above trend line support, currently near 1.0880. This level is also near the 55-day exponential moving average. In the short term, 1.1010 is already quite a strong support level.
Source: Fx Street
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