EUR/USD PRICE: 17-MONTH MAXIMUM
FXOpen
Last week, the dollar index posted its worst week of 2023 amid news of declining US inflation, which was seen as a motive for easing the Fed's current tight monetary policy. "I think the dollar can stay under selling pressure," Carol Kong, currency strategist at Commonwealth Bank of Australia, told Reuters.
On the other hand, inflation in the Eurozone is not declining as fast. FT writes that some ECB officials consider it necessary to raise the rate several more times after the summer meetings, which supports the euro.
The EUR/USD chart shows demand dominance. At the same time, the price of the euro against the dollar:
- rose above the 1.1200 level for the first time in 17 months. Note that this level has influenced the EUR/USD price dynamics in the past;
- went beyond the upper limit of the ascending channel.
Given these 2 observations, we can assume that the market is in a vulnerable position for a pullback, and the bulls will need to make specific efforts to gain a foothold above 1.1200.
The situation may change in the near future:
- US retail sales data to be released today at 15:30 GMT+3;
- Tomorrow at 12:00 GMT+3 inflation data in the Eurozone will be published.
Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips (additional fees may apply). Open your FXOpen account now or learn more about trading forex with FXOpen.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
AUD/USD: Will the RBA Be Able to Keep Its Currency Strong?
As the chart shows, AUD/USD has entered a distinctly bearish phase in recent weeks, reflecting the broader consolidation — and in some cases outright weakness — that the US dollar has begun imposing across most major currency pairs.
Fundamental Analysis
The
AUD/CAD: Pair Remains Range-Bound Amid Interest Rate Divergence
The key macroeconomic factor for AUD/CAD remains the divergence in monetary policy between the two central banks. After three consecutive rate hikes since the beginning of the year, the Reserve Bank of Australia left its cash rate unchanged at
Brent Crude Oil Analysis: Stabilisation or Simply a Pause?
Over the past few weeks, financial markets have been more focused than ever on developments surrounding the Strait of Hormuz — a critical waterway at the centre of ongoing US-Iran negotiations. The back-and-forth of diplomatic headlines has injected significant volatility into