EUR/USD Lacks Vigor After Monday’s 5-Month High
EUR/USD Analysis
The pair set five month-highs on Monday, but saw a volatile session as markets contemplated the Fed's tightening path and ended the day with losses. The US central bank may have hinted at smaller rate hikes ahead, but hawkish commentary propped up the greenback.
EUR/USD once again faltered at 1.0500, while the Relative Strength Index (RSI) did not follow the price action higher. The rejection and the RSI divergence could lead to further weakness and a breach of 1.0199-50, although sub-parity moves would need a strong catalyst.
On the other hand, EUR/USD is upbeat today and heads towards its best month of the year. The higher highs keep it in on track to 1.0609, although further advance towards and beyond 1.0787 does not look easy in the near-term.
The current week contains many economic releases that can cause volatility and determine the pair's path. These include inflation updates from the US and Eurozone, the US Jobs report and speech by Fed-Chair Powell.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
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