EURUSD: The long power of the exchange rate is gatheringAs mentioned in our article yesterday, as long as EUR/USD remains above 1.056, the bearish momentum is still limited, and once EUR/USD stabilizes above this position, the euro may point to 1.0650/60.The current exchange rate is 1.06482, which is fully in line with my expectations yesterday.
On the fundamental side, more hawkish remarks made by several members of the European Central Bank (ECB) support the euro and support the reasons for increasing huge interest rate increases in the coming months; in addition, the generally positive tone around the stock market is considered to put pressure on the safe-haven dollar and provide additional support for EUR/USD.
On the technical side, the continued strength of the pair and its foothold above the convergence resistance level of 1.0645-1.0650 are conducive to the rise of the market.In addition, the oscillators of the daily chart have just begun to move in the positive area and support the prospect of additional gains.However, any further increase may face some resistance in the 38.2% Fibonacci retracement area of about 1.0725, followed by the 50% Fibonacci retracement area of about 1.0785 and the 1.0800 integer mark.Some follow-up buying will negate any recent negative tendencies and will continue to push up EUR/USD.
On the 4-hour chart, the exchange rate is currently falling under the suppression of the short-term moving average, and the short-term technical indicators are biased towards the air. However, in the short-term, I think this is a technical correction to the previous increase. It is conducive to the market to consolidate the bottom while accumulating kinetic energy, which is more conducive to the small-level market to rise, and below at the position of 1.0635 is the intersection of the middle Bollinger band and the 30-day moving average support, which has relatively strong support for the short-term market.
Taken together, today's EUR/USD short-term operation thinking can go long at 1.0635.
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