How US Independence Day affects EURUSD price action
The EUR/USD, also known as the “Euro-Dollar” and “Fiber,” is one of the most actively traded forex pairs, reflecting the exchange rate between the Euro and the US Dollar. Its movement is heavily influenced by economic data and monetary policies from both the Eurozone and the United States. Today’s market activity is expected to be subdued due to the US holiday, Independence Day, which may result in low liquidity and erratic volatility. Key Eurozone data, including industrial orders, output, and retail sales, will provide insights into economic strength, potentially supporting the Euro if results exceed expectations. However, with reduced market activity in the US, significant movement may be limited unless unexpected data causes a surprise shift in sentiment.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
The EUR/USD price has been moving in an upward bullish trend, but after the significant bearish candle observed yesterday, the price has corrected partially. As seen in the Bollinger Bands, the price has dropped from the middle band to the lower band in a single candle, indicating short-term volatility. Following this drop, three green candles have emerged, with the most recent one trying to recover and reach the middle band once again. The chart highlights important support and resistance levels that have previously influenced price reactions. The MACD and histogram indicators show some bullish momentum, but caution is advised given the market’s current state of lower liquidity due to the US holiday.
•DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore LLC”. This post has been published only for educational purposes.
