EUR/USD resumes the upside and re-targets 1.0800
The single currency regains balance and propels EUR/USD back to the upper end of the range near 1.0780 at the beginning of the week. EUR/USD quickly leaves behind Friday’s pullback and advances markedly following the opening bell on the old continent on Monday. The strong uptick in the pair came on the back of the resumption of selling pressure in the greenback, which in turn relegates the USD Index (DXY) to navigate in the area of multi-week lows near 103.30. In the meantime, market participants are expected to closely follow the release of US inflation figures tracked by the CPI on Tuesday and the interest rate decisions by the Federal Reserve on Wednesday and the ECB on Thursday.
EUR/USD trades close to the 1.0800 zone amidst further selling pressure hurting the dollar on Monday. In the meantime, the pair’s price action is expected to closely mirror the behaviour of the US Dollar and will likely be impacted by any differences in approach between the Fed and the ECB with regards to their plans for adjusting interest rates. Moving forward, hawkish ECB speak continues to favour further rate hikes, although this view appears to be in contrast to some loss of momentum in economic fundamentals in the region. So far, the pair is gaining 0.26% at 1.0776 and the surpass of 1.0787 (monthly high June 8) would target 1.0805 (100-day SMA) en route to 1.0879 (55-day SMA). On the other hand, the next support at 1.0635 (monthly low May 31) seconded by 1.0516 (low March 15) and finally 1.0481 (2023 low January 6).