Greenback slipped, Fed speech in focus.
“Risk appetite increases due to lack of catalyst.”
The US dollar slipped against other major currencies on Tuesday, trimming prior gains as investors continued to cash out their profits. Economists postulate that recent retracement is likely to be temporary as the market lack of new catalyst to push the currency higher. Nonetheless, US dollar is expected to find its support in the mid to long-term due to robust economic performance when compared with other countries. This week, traders will place the limelight on speeches delivered by Federal Reserve members, especially Chairman Jerome Powell to catch new clues with regards to interest rate hikes. As of writing, traders are expecting Fed to raise interest rates by 50 basis points in June and July due to stubbornly high inflation rate in the US.
Quick recap on EURUSD
EURUSD enters retracement phase as the pair rebounds from lower level as of recent.
EURUSD Weekly Technical Analysis
In weekly chart, market structure of the pair is skewed towards the downside with some bulls defending the target at around 1.0381.
EURUSD Daily Technical Analysis
In the near-term, we expect the pair to extend its retracement, towards the direction of 1.0624.
Trading Idea
ORDER: SELL STOP
ENTRY: 1.0340
STOP LOSS: 1.0470
Target 1: 1.0200
Target 2: 1.0140
ZFX Analyst’s Comment
The pair is expected to extend its rebound due to bullish push around 1.0381 mark. Nonetheless, 200-MA line would be the major hurdle for the pair that may substantially revert its market structure towards the downside in mid to long-term.
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