EURUSD shines but could be temporary.
“Greenback took a breather as investors begin to cash in their profit while waiting for next market mover in the near future.”
Greenback lost its bullish trajectory as investors continues to cash in their profits while waiting for upcoming data from the region. The currency suffered from slight loss as GDP contracts for the second quarter although employment market remains robust due to lower jobless claims. Nonetheless, the market remains hopeful towards Fed as they are likely to extend policy tightening for longer period. This was evident as Fed official Loretta Mester expects inflation to remain as the main economic issue moving forward.
Quick recap on EURUSD
The pair continues to trade within the descending channel, keeping the long-term forecast in check for the time being.
EURUSD Weekly Technical Analysis
From weekly perspective, bulls start to overcome selling pressure as it passes through 0.9660.
EURUSD Daily Technical Analysis
With overall momentum shifted towards the upside, we may see the pair extending its gains towards the upper boundaries of descending channel.
Trading Idea
ORDER: SELL LIMIT
ENTRY: 0.9970
STOP LOSS: 1.0070
Target 1: 0.9865
Target 2: 0.9735
ZFX Analyst’s Comment
From the current setting, we expect bull-run to extend towards the upper boundary of the channel whereby bears would emerge to defend their position. While the current outlook looks promising for the former, we still expect the pair to follow its long-term trajectory.
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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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