EUR/USD Forex Signal: Extremely Bullish Above 1.0945 – 13 August 2024

Bullish view

-- Buy the EUR/USD pair and set a take-profit at 1.0960.
-- Add a stop-loss at 1.0910.
-- Timeline: 1-2 days.
Bearish view

-- Set a sell-stop at 1.0920 and a take-profit at 1.0850.
-- Add a stop-loss at 1.0960.

The euro wavered against the US dollar as traders focused on the upcoming US and European economic numbers. The EUR/USD exchange rate was trading at 1.0930 on Tuesday morning, where it was trading at on Monday.

Focus on ECB and the Fed

The EUR/USD pair was stuck in a range as traders assessed the next actions of the Federal Reserve and the European Central Bank (ECB).

A survey data by Bloomberg showed that most economists expect the central bank will deliver six rate cuts by the end of 2025. If this happens, the economists expect the bloc’s rate will move from the current 3.75% to 2.25%.

[geotargetedbrokercarousel]

The biggest concern for the ECB is that the bloc’s inflation is still high and that stubborn wage pressures are contributing to that. Economists expect a report on Tuesday to show that the Spanish inflation retreated from 3.4% to 2.8% in July.

The next key data to watch will come out from the United States, which will publish the latest Producer Price Index (PPI) report on Tuesday. This data is expected to show that the PPI remained at 0.2% in July while the core figure retreated from 0.4% to 0.2% in July.

The most important data this week will be the consumer price index (CPI) data that will confirm whether inflation continued falling in July. The general view among investors is that inflation rose slightly in July.

Even if this happens, the Fed will likely stick to its dovish tone. In a note on Monday, analysts at Evercore noted that this was a labor-first Fed and not an inflation-first one. In the last meeting, the Fed noted that it was focused on the state of the labor market, which has softened recently.

EUR/USD technical analysis

The EUR/USD pair has been in an uptrend after bottoming at 1.0600 in April. This rally continued, pushing it to the key resistance point at 1.1000 last week. It then retreated to a low of 1.0882 on Thursday.

The pair has remained above the 50-period moving average and is approaching the key resistance point at 1.0950, its highest point on July 17. It has also risen above the important point at 1.0915, its highest level on June 4.

Therefore, the pair will likely continue rising ahead of the US inflation report. A move above the key point at 1.0948 will point to more upside as buyers target the resistance point at 1.0950.

Ready to trade our daily Forex signal? Check out the best forex brokers in Europe worth using

Original Source DailyForex.com provides daily fundamental and technical analysis and signals for those looking to trade based on trends in the currency markets.