EUR/USD – The Pair May Keep on Rising as It Forms a Double-top on Charts
Long Position
Take Profit: 1.0910
Stop Loss: 1.0800
Timeline: 1 day
Short Position
Sell stop: 1.0800
Take Profit: 1.0700
Stop Loss: 1.0900
Since March 8th, the pair price has been heading in a rising direction. After falling to 1.0523, there was a recovery to 1.0850. This also matched up well with the 61.8% Fibonacci retracement level. Along with crossing the Woodie Pivot point, the pair has also risen above the 25-day and 50-day EMAs. The notable advance is the formation of a double-top pattern, the top part of which touched the first resistance level at 1.0910. Overall, the pair is likely to keep rising based on technical analysis.
The favourable US economic reports did cause a slight decline in the EUR/USD pair. The most recent data indicate that despite ongoing hikes in interest rates, the The US economy is still performing fairly well. As the banking crisis is practically over, we may anticipate the Fed to continue their monetary policy with a hawkish tone. We must keep an eye out for the release of US Q4 GDP statistics, which may have something to with the pair.
Yet, since the PCE index data is the Federal Reserve’s prominent inflation indicator, we need to pay closer attention to it. The EUR/USD pair may potentially react in some way to the recent inflation statistics from Spain and Germany. According to current estimates, inflation appears to be shrinking in both economies, and the European Commission is preparing to provide fresh business and consumer confidence figures.
