The EUR/USD pair will trade near 1.08985 tomorrow after peaking around 1.09745 on Tuesday. Distinctive employment data arrived from the US last week, but its Friday statistics came close to expectations as Forex trading conditions deteriorated on the back of holiday markets. Trading should be fairly light again earlier this week, but speculators should expect more volume in the forex market on Tuesday as EUR/USD may react with some volatility.
The ability to hit a high early last week, not since February, remains attractive to day traders who are bullish on bullish technical charts, which continue to show a fairly clear increase for EUR/USD. There was some reversal during a rally, but the prevailing behavioral sentiment still bet on a stronger pair. The storm clouds are still gathering, and jittery results could erupt, but day traders may find speculation on more upside with the EUR/USD attractive.
EUR/USD’s instability to stay above the 1.09000 level may confuse EUR/USD bullish traders, but it could also create opportunities. The currency pair climbed well above the indicator early last week, but subsequent selling has been notable. The question is whether the EUR/USD sell-off happened because financial houses wanted to be more conservative in buying ahead of Good Friday and the Easter holidays, which seems possible.
EUR/USD weekly technical analysis
The pairs’ speculative price range is between 1.08190 and 1.10210.
Technical traders who take more than a daily or weekly approach to their long-term perception forecast have been bullish on the stock performance of the EUR/USD since late September 2022. However, day traders should be ready for a bearish EUR/USD to reverse lower as the daily swings in the forex pair are driven by behavioral sentiment generated by economic data and market conditions.
Watch for support levels near 1.08400 to 1.08200 this week; if they prove persistent, it could trigger more bullish reactions. A drop below 1.08200 could certainly happen, but only higher-than-expected inflation in the US can trigger it.
If the CPI and PPI report comes out weaker than expected, it could lead to further gains in the EUR/USD pair. A retest of last week’s high could quickly turn into a targeted trade near the 1.10000 level if behavioral sentiment in the market remains bullish.