One of the biggest gainers on Thursday were the EUR/USD currency pair with triple-digit gains. Dollar Pressure Released This increase happened as negative pressure on the US dollar persisted. The duo soared to their loftiest position since April 22. This blowout increase confirms the robust, positive trend that’s been established for the past ~four months. Market participants weighed the ramifications of possible Fed interest rate cuts, with a hot jobs report trumping hopes of imminent easing. Consequently, the EUR/USD pair soared above the 1.1600 level for the first time since November 2021.
The euro/dollar cross is testing its 2008 highs. This reversal is primarily fueled by trade-related uncertainties and expectations of monetary easing from the US central bank, which are both profoundly affecting market trends. Traders now expect a close to a 70% chance that the Fed will be the first one to begin its own rate-cutting cycle in September. This expectation is ratcheting upward pressure on the strength of the US dollar. While at the same time, it is emboldening the euro.
On Thursday, EUR/USD positive momentum persisted strongly throughout the trading day. Positive technical signals on its daily chart helped propel this move higher. Market participants recognized that 1.1400 round figure is an important support floor for the pair. As it approached this important psychological round number, their focus became acute. Horizontal support levels at 1.1375-1.1370 add to this important barrier.
The recent breakout has broken above a short-term trading range resistance wall. This move is hugely bullish Eur/Usd and confirms a positive short-term outlook for the currency pair. Should the EUR/USD make a subsequent move beyond the 1.1500 psychological mark, it would likely reinforce bullish sentiment among traders. Business analysts are all over any developments here. The RSI (Relative Strength Index) on the 4-hour chart is flashing just slightly overbought, so watch for a pullback.
The EUR/USD currency pair is surging. It now approaches the 1.1570-1.1575 area, which was last seen in April as the year-to-date high. This should be a very concerning area putting up an immediate barrier to further progress. These traders are still keeping a watchful eye. If prices do take the plunge below the 1.1500 handle, they could see that as a chance to buy up near previous resistance up at approximately 1.1440.
The ongoing economic landscape underscores the importance of monitoring economic indicators and central bank announcements that could impact currency valuations. Traders are eagerly awaiting the next US Producer Price Index (PPI). They are looking forward to tomorrow’s inflation data guiding the monetary policy and impacting the market expectations.