EUR/USD Price Analysis: Bulls Hold the Grip as Financial Markets Stabilize
- Financial markets show stability at the start of the week, easing concerns.
- Upcoming US Consumer Price Index release expected to impact market sentiment.
- EUR/USD remains technically neutral, but bullish momentum persists.
The EUR/USD pair is trading around 1.0920 on Monday, with investors cautious amidst a calm start to the week in financial markets. Positive gains in US equities on Friday helped alleviate worries about the US economy, although concerns about a potential recession lingered following weak US data. Speculation on Federal Reserve interest rate cuts also influenced market sentiment.
Investors are awaiting key macroeconomic data releases this week, notably the US Consumer Price Index (CPI) update on Wednesday. Forecasts predict a slight decrease in the CPI YoY to 2.9% for July, while the core annual figure is expected to be 3.2%. The Eurozone will also release its Q2 GDP estimate on the same day, projected at 0.3% QoQ.
In terms of economic indicators, Germany reported a rise in the July Wholesale Price Index, while the American session is expected to be quiet in terms of macroeconomic data releases.
Technical Analysis and Outlook for EUR/USD
From a technical standpoint, the EUR/USD pair shows potential for further gains. In the daily chart, the pair is trading above all its moving averages, with positive readings from technical indicators. To confirm a bullish trend, EUR/USD needs to surpass the 1.0950 level and aim for the 1.1000 region.
In the short term, the pair remains neutral, hovering around the 20 SMA in the 4-hour chart. Support levels are seen at 1.0890, 1.0845, and 1.0800, while resistance levels are at 1.0950, 1.1005, and 1.1045.
Overall, with stable financial markets and upcoming key data releases, investors should closely monitor the EUR/USD pair for potential trading opportunities and market trends.