- May 30, 2024
- Posted by: james w
- Category: Market News
Understanding EURUSD Movements Indicators Data
The EURUSD currency pair chart represents the exchange rate between the Euro and the US Dollar, the two most traded currencies in the forex market. As one of the most liquid pairs, EUR-USD reflects the economic strength of the Eurozone and the United States, influenced by various economic indicators and geopolitical events. Today, the EUR/USD pair chart is poised for significant movements driven by several key economic reports. The Eurozone faces medium impact from the Spanish Flash CPI y/y, with a forecast of 3.7%. Higher than expected inflation figures could bolster the Euro as it might prompt the European Central Bank to consider tightening monetary policy. Additionally, the Italian Monthly Unemployment Rate, Eurozone Unemployment Rate, and Italian 10-year Bond Auction are expected to have a low impact. On the USD side, the high-impact Preliminary GDP q/q, forecasted at 1.2%, and Unemployment Claims at 218K, are crucial. Better than expected figures here can strengthen the Dollar, reflecting a robust economic recovery and potentially influencing the Federal Reserve’s future policy directions.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
Analyzing the H4 chart of EUR USD, the recent price action shows a clear bearish momentum. The last five candles have stayed in the lower part of the Bollinger Bands, with the last three touching the lower band, indicating strong selling pressure. The Bollinger Bands themselves have been widening, suggesting increased volatility and continuation of the bearish trend of EURUSD. The MACD indicator also supports this bearish outlook, with the MACD line remaining below the signal line and the histogram showing increasing negative values. These indicators collectively suggest that the EURUSD pair chart is likely to face further downward pressure in the short term.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.