EUR/USD Faces Resistance as Traders Remain Cautious amid Key Week

The US Federal Reserve’s preferred inflation gauge revealed the smallest yearly gain in six months, dampening hawkish expectations for the central bank. The absence of major hawkish comments from Fed officials further boosted EUR/USD bulls. However, the currency pair closed the previous week, month, and quarter on a positive note.

From a technical perspective, EUR/USD shows signs of consolidation as it retraces from a convergence of the 50-SMA and a two-week descending resistance line. The presence of bullish MACD signals and a stable RSI (14) counterbalances the pair’s retreat, suggesting a potential intraday decline towards an ascending support line from May 31 around 1.0860. However, further downside is likely to be limited by recent lows near 1.0835 and the 200-SMA level around 1.0815.
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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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