- The Euro is getting support amid Chinese statements.
- U.S. economic indicators are rising.
- EUR/USD is going down ?
On Thursday the beginning of the session for EUR was quite confident, but the same can’t be said about the dollar, which went down amid Chinese statements about potential economic growth, which caused the risks to rise. There were outflows from the dollar, which helped the euro strengthen.
The euro was also boosted by the European Central Bank statement that 50 basis points rate hikes might soon become the “new standard”, as rising inflation has to be dealt with somehow.
U.S. GDP is rising above expectations and this is risky for the EUR/USD pair.
DAILY CHART OF THE EUR/USD
Chart prepared by Warren Venketas, IG (by Dailyfx)
The daily chart shows a rise to the June swing, but it has not yet been broken. The Relative Strength Index (RSI) is out of overbought levels, so Warren Venkettas expects a potential decline after the close in 2022.
However, retail traders are short EUR/USD, with about 60% of traders holding short positions. EUR/USD forecast below some further useful tips of the expectations.
Will the price go further?
Buyers on the downside are waiting for price to rise above the 100\200 – hourly moving averages and reach the upper extrema. The lower and upper extrema are not far off, given the rather narrow trading range of 80 pips.
Bottom line
The Euro continues to strengthen in the range between the resistance around 1.0640-1.0660 and support 1.0600-1.0580.
The bulls are unable to break through the resistance, which carries higher risks of support loss and decline towards 1.0540-1.0520. Overcoming the resistance will open the way to 1.0680-1.0700.
Read also our guide of best trading platforms for 2022
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