Hey,
I’m looking for fellow traders that trade EUR/USD or other big currency pairs. My goal isn’t to start a signal group but to have genuine discussions on where the price could be headed and the impact of related news.
Feel free to comment with your opinion below the posts.
I’m from Switzerland btw.
European stock markets rebounded as investors sought to recover from recent losses and assess quarterly corporate earnings. The DAX, CAC 40, and FTSE 100 all posted gains. The banking sector rallied after Italy clarified a new tax, boosting major banks like UniCredit and Intesa Sanpaolo. Corporate earnings reports varied, with Ahold Delhaize’s stock down due to missed profit expectations, while Delivery Hero’s surged on raised revenue outlook. Continental’s stock rose despite a lowered tire sector outlook. Disappointing Chinese inflation data hinted at ongoing economic challenges. Oil prices rebounded, though concerns over China’s economy and U.S. inventory growth persisted. Gold and the EUR/USD exchange rate also saw modest gains.
The EUR/USD currency pair is currently trading within a descending channel, which is part of a larger long-term uptrend as seen on the weekly chart. Last week, the price dropped below a trendline support, indicating the possibility of a continued downward movement. However, due to the Federal Reserve (Fed) and the European Central Bank (ECB) being at or close to their peak interest rates and facing mixed progress on inflation, the pair has been experiencing fluctuations in the short term.
These uncertain market directions make it challenging to predict the trading outlook. Today’s price action is important and might indicate the pair’s future trajectory. After breaking below a trendline, it’s often wise to wait for a retest of the trendline as a resistance before making trading decisions. Today, the price opened around a key area where the previous trendline support, now turned resistance, intersects with the June high of 1.1012 for this year. Currently, the US dollar is gaining strength, which is unexpected considering that treasury yields have decreased and the market’s expectations for rate hikes have not shifted significantly.
In the case that the downward movement continues, the next support levels are at 1.0910 and 1.0831. On the other hand, resistance levels are at 1.1012 and the psychological level of 1.1100. The Moving Average Convergence Divergence (MACD) indicator suggests that momentum is still skewed towards the downside. In summary, the EUR/USD pair is trading within a descending channel amidst a broader uptrend, and recent price action indicates the potential for a continued downtrend. The movement is influenced by the Fed and ECB’s interest rates, inflation progress, and unexpected US dollar strength.