EUR/USD Hits a New 2-Week High of 1.0950, Targets 1.1000

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The EUR/USD currency pair on Tuesday extended the current weekly gains to top the 1.0950 level. This also marked a new 2-week high in the exchange rate. The currency pair continues to oscillate in a sideways channel characterized by sharp rallies and gentle slopes.

Tuesday’s gains pushed the pair to the overbought levels of the 14-hour RSI in the 60-min chart. The currency pair is also now several pips above the current levels of the 100-hour and the 200-hour SMA lines.

EUR/USD Fundamentals Overview

From a fundamental perspective, the EUR/USD currency pair is trading ahead of a relatively quiet period in the market. Very little economic data is expected to have an impact on the market today and tomorrow. On Monday, the US NAHB Housing Market Index for May beat the expectation of 33 with 37. On Tuesday, the EU ZEW survey on the economic sentiment outperformed the expectation of 25.2 with 46. Construction output edged lower from the previous period.

Looking forward, the Markit PMIs for both the EU and the US will highlight key economic events this week. In the US, the initial jobless claims will also attract attention. Also, Fed chair Jerome Power is expected to testify in front of Congress on the economic and monetary policy amid the coronavirus pandemic. In the EU CPI data is expected on Wednesday while the EU Monetary Policy meeting is scheduled to take place on Friday.

EUR/USD Technical Analysis (the 60-min Chart)

Technically, the EUR/USD currency pair appears to be trading within a sideways channel. This indicates a lack of clear directional momentum in the market. The pair has recently surged to overbought levels of the 14-hour RSI.

The bulls will be looking to extend the current gains towards 1.1021 or higher at 1.1102. On the other hand, the bears will target short-term pullback profits at around 1.0879 or lower at 1.0799.

EUR/USD Technical Analysis (the Daily Chart)

In the daily chart, the EUR/USD currency pair is trading within a slightly bearish channel. This indicates a significant long-term bearish bias in the market sentiment. The pair si pegged centrally in the 14-day RSI in the daily chart. It is pinned at the 100-day SMA, the 200-day SMA is a few pips higher.

The bulls will be targeting long-term profits at around 1.1167, 1.1432, and 1.1634. On the other hand, the bears will target pullback profits at around 1.0734, 1.0506, or lower at 1.0327.

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