EUR/USD – The major pair has entered a consolidation phase

My FX List
July 4, 2023

Long Position

  • Take Profit: 1.0965
  • Stop Loss : 1.0850
  • Timeline: 1-2 days

Short Position

  • Sell Stop : 1.0890
  • Take Profit: 1.0835
  • Stop Loss : 1.0950

The pair price regained last Friday when firm US PCE statistics were released, indicating the probability of a rate hike this month. Earlier, the pair price sank to 1.0836, the lowest in two weeks, before rising to 1.0930 on Friday as previously stated. There isn’t much going on for the pair right now because there aren’t any major economic data releases. As a result, the pair is expected to continue consolidating for some time without showing any strong trends.

Due to Independence Day celebrations, US traders will be taking a holiday from trading, therefore the first week of the second quarter will see a lack of market activity. The only important economic data releases affecting the pair are European and US manufacturing PMIs, although their impact will be minimal. Another important data release to watch for is the latest American Job numbers, which will be released on Friday.

We can see the pair price floating at the 61.8% Fibonacci Retracement level and the 50-period MA on the 4H price charts. It also moved slightly over Andrews pitchfork indicator’s first support level. The ADX also dropped to its lowest level since June 13th. With minimal trade activity from the US, price action will be limited, with more consolidation on the horizon.

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