Market Outlook
Bull shift towards euro as greenback extends its slump. - Zeal Capital Market

Bull shift towards euro as greenback extends its slump.

20-01-2023 08:29

“EURUSD braces intraday high, on track to record its second weekly gains.”

Bulls clings onto euro following broad weakness over the greenback and revived optimism towards the eurozone. Although European Commission for Economy commented that EU is entering into a period of economic contraction, ECB President Christine Lagarde noted that its current economic downfall would be minor. On the other hand, greenback extend its pullback as recent comments from Fed officials were less aggressive as compared to prior, mainly due to recent mixed data and depreciation in inflation.

Quick recap on EURUSD

The pair remain skewed towards the upside as previous downturn were short-lived.

EURUSD Weekly Technical Analysis

Bull shift towards euro as greenback extends its slump. - Zeal Capital Market

From weekly perspective, recent price action shows strong buying support from the downside.

EURUSD Daily Technical Analysis

Bull shift towards euro as greenback extends its slump. - Zeal Capital Market

From daily perspective, the pair is expected to extend its upside momentum, if a confirmatory close above 1.0860 was achieved.

Trading Idea

Bull shift towards euro as greenback extends its slump. - Zeal Capital Market

ORDER: BUY STOP

ENTRY: 1.0910

STOP LOSS: 1.0830

Target 1: 1.0990

Target 2: 1.1050

ZFX Analyst’s Comment

The pair remains tilted towards the upside from long-term perspective; thus, a close above nearest resistance level will provide more confirmation.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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