EURUSD Technical Analysis – Next target is 1.10?

Basic overview

Yesterday, the US dollar fell across the board in response to calm conditions. US consumer price index Report when data matches expectations. Markets have fully priced in expectations for rate cuts in September and December, resulting in a generally risk-on climate that will continue for some time barring any negative surprises in the coming days and weeks. there is a possibility.

Nothing has changed on the euro side. ECB speakers continue to confirm a first rate cut in June, but are not overly committed to the timing of subsequent rate cuts. Markets are expecting three rate cuts this year, which is in line with comments from ECB members.

EURUSD Technical Analysis – Daily Timeframe

On the daily chart, we can see that EURUSD yesterday surged to the 1.09 handle following the US CPI report. We are currently seeing some rejection from major swing levels, which is completely normal after such a strong rise. The trend remains bullish as the price continues to make new highs and new lows. Sellers need the price to drop below the 1.0727 level to invalidate the bullish case and regain control.

EURUSD Technical Analysis – 1 hour timeframe

On the hourly chart, we can take a closer look at the rejection from the 1.09 handle. From a risk management perspective, the buyer Confluence
of trend line
and 61.8% fibonacci retracement level.

However, if the positive sentiment continues and the price rises above the 1.09 handle before returning to the level; support
In the zone, buyers may flock to extend to the 1.10 handle anyway.

Future catalyst

today All eyes will be on U.S. jobless claims as the market waits to see if last week’s claims are the start of a trend or just a spike.

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