EURUSD: Can Peace Hopes Fuel a Euro Breakout?

Is the Euro climbing wall of worry?

The pair is currently at 1.17867 rose to 1.18233 with USD liquidity is seeing less demand as the geopolitical climate stabilizes. As the U.S. and Iran prepare to meet in Islamabad, traders are abandoning capital preservation strategies in anticipation of a calmer week ahead. US jobless claims provided better results from 218000 to 207000 making the currency stronger, while the Industrial Production month-over-month showed lower than expected results from 0.7% to -0.5% with a forecast of 0.1%. The US Producer Price Index (PPI) missed expectations which is also a factor made the USD into bearish trend or weaking of the currency.

With a notable acceleration on the increase in prices, the outlook remains uncertain and volatile and the labor might have a possible demand higher wages in respond to the increasing prices in energy.

Which statistical report guiding the pair near 1.1825 level?

EUROZONE BALANCE OF TRADE

PRICE EFFECT on the EURUSD pair

If there is a Surplus on the Trade, this would signal an uptrend or bullish for the Euro meaning foreign partners are buying the currency or convert their currencies to Euros. If there is Deficit on the data, this would signal a bearish for the Euro, meaning the region is spending more on foreign counterparts which is mostly priced in US dollar denomination than earning from their domestic products or exports.

Is the Current Euro Uptrend Sustainable or Is a Bearish Rejection Imminent?

• Resistance 1 1.1823
• Resistance 2 1.1849
• Support 1 1.17665 high frequency testing on this level
• Support 2 1.17386 the correctional phase
• 1.16979 the next support to break
• RSI (Relative Strength Index) 62.11

Conclusion & The ACY Edge

The pair is having difficulty to clear the supply zone at 1.1825 along overextended 4-hour and RSI levels, the outlook favors a sideways move or a corrective dip to find a more sustainable footing.

Disclaimer: This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplies by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.