Key Resistance Broken Will EURUSD Continue Rallying
The EUR/USD currency pair, often referred to as “Fiber,” is one of the most traded forex pairs globally, representing the exchange rate between the Euro and the US Dollar. It is highly influenced by macroeconomic events, central bank policies, and geopolitical developments. As traders await key economic data today, including the US ADP employment change, ISM Services PMI, and a speech by President Trump, volatility is expected. Strong employment data and positive PMI figures could reinforce the USD, pushing EUR/USD lower, while any disappointing results might lead to further gains for the Euro. Additionally, the Federal Reserve’s Beige Book release may offer insights into the US economic outlook, influencing price action.
Chart Notes:
• Chart time-zone is UTC (+02:00)
• Candles’ time-frame is 4h.
On the EUR/USD H4 chart, the price has sharply broken above the key resistance level of 1.05180, signaling strong bullish momentum. However, a potential pullback to this level is likely before a continuation higher. The Bollinger Bands are widely expanding, indicating increased volatility, with the last red candle suggesting a possible short-term correction. The Parabolic SAR dots remain below the price, confirming the ongoing uptrend. The Stochastic Oscillator is currently in the overbought zone, hinting at a possible retracement before another upward push. The RSI (Relative Strength Index) is above 75, also signaling overbought conditions, which could lead to a temporary pullback. Additionally, the Awesome Oscillator (AO) remains in positive territory, displaying increasing bullish momentum. Overall, while the EUR/USD remains in an uptrend, a short-term correction towards 1.05180 could occur before further upside movement.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
