Euro Dollar (EUR/USD), Forecasts: Towards New Highs?

Euro Dollar (EUR/USD), Forecasts: Towards New Highs?
Euro Dollar (EUR/USD), Forecasts: Towards New Highs?
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The euro-dollar exchange rate (EUR/USD) regained its share in just a few hours and yesterday evening managed to reach new relative highs, which revolutionize very short-term forecasts and bring the cross back to a bullish position, towards the intermediate level of 1, 08.

Now, the technical reference level becomes precisely the latter, to which the price could tend with increasing emphasis already during this week. A bullish break-out from this value could bring the euro-dollar exchange rate even closer towards the ambitious bullish target of 1.10.

Meanwhile, today at the time of writing, the EUR/USD exchange rate stands at 1.0733.

Forecasts on the euro dollar exchange rate

The euro-dollar exchange rate is now ready to move steadily beyond the main resistance of 1.075 and towards the intermediate values ​​of 1.0775 and 1.078, before a possible test of the resistance at 1.08.

If the current increases are maintained, this last resistance, the main very short-term value, could hide a first trap bearish.

In fact, a new retracement around the value of 1.08 cannot be ruled out, capable of bringing the euro-dollar exchange rate back towards the already tested support of 1.065.

However, if the cross should manage to remain solidly bullish, thanks to the positive data from the Eurozone, we should not underestimate the renewed intensity of theuptrendalso towards other ambitious targets at 1.085 and 1.088.

The 1.10 level mentioned at the beginning instead represents the latest short-term bullish target, probably the most important since the beginning of the recovery, considering its enormous psychological value. To reach this value, however, a greater push from the market would be needed, which could materialize in the event of new statements by the ECB and the Fed.

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At the moment, in fact, what is essentially supporting the increases is the misalignment between the two economic policies of the respective central banks, which share the aim of countering galloping inflation.

Today’s economic calendar

Speaking of central banks, today’s economic calendar features Federal Reserve Chairman Jerome Powell’s speech.

Another US data, certainly of less importance for the euro-dollar exchange rate, will be the IBD/TPP economic sentiment index, while from the Eurozone attention will be paid to French industrial production, on a monthly basis.

For a look at all of today’s economic events, check out our economic calendar. You can also follow our Facebook page to stay updated on the latest economic news and technical analysis.

The article is in Italian

Tags: Euro Dollar EURUSD Forecasts Highs

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