October 11, 2019, | AtoZ Markets – EURUSD pair has been trading in a bullish mode for the past few days. The pair is holding above 1.10 level. It now tops the 50, 100, and 200 SMA on the 4H chart. From the charts, the momentum for EURUSD remains positive and the Relative Strength Index (RSI) remains below the 70 levels.
The 1.10 level turns into support. The level capped EURUSD four times earlier in October. EURUSD has at last taken out the four-month downtrend and given that the market has recently turned from the base of the weekly channel at 1.0892, they view the market as a base.
From the technical charts, the Longer term the critical resistance to overcome it at the top of the one year channel at 1.1303 and the 200-week moving average at 1.1354.
EURUSD Fundamental Outlook
After the ECB meeting and US CPI numbers became public earlier today, EURUSD posted a bullish momentum. This morning’s ECB meeting showed that there was strong opposition to last month’s monetary easing package.
The end-of-week forex action should be lively. Several economic events have the potential to shake up valuations, headlined by Germany’s CPI and ECB President Draghi’s speech. Friday’s US session features the Michigan Consumer Sentiment Index, which might drive considerable participation and volatility to the Greenback.
Another factor that may drive EURUSD pair towards upside is the US-China trade talks. The trade war has been boosting market sentiment. The trade war between the US and China is pressuring the USD and YEN and supporting all other currencies.
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