This week will be particularly important for the EUR/USD pair. The euro has held up well despite global indices correcting, preventing the strength of the USD from impacting the pair's exchange rate.
This volatility is expected to remain high, with the release of economic activity data, the NFP, and the ECB's decision to cut interest rates.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Technical Analysis
According to technical analysis, the pair continues to trade above the structure that recently broke, and the 50-period EMA has played a significant role in supporting the upward trend. However, when we reduce the time frame, we notice that the pair has been moving sideways for several days. Given the important events this week, these moments could serve as catalysts to spark new momentum for the euro against the US dollar.
The break of the dashed trend line should be the trigger.
EUR/USD Daily Time Frame chart. Source: xStation 5
EUR/USD, 4 hours time frame chart. Source: xStation 5
When analyzing the US dollar index, we can see that the bearish structure remains intact, and this week's data could help trigger new momentum, potentially supporting the appreciation of the EUR/USD.
USDIDX Daily time frame chart. Source: xStation 5
Forex Heatmap. Source: xStation 5
Henrique Tomé,Analyst Portugal
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
