The EUR to USD exchange rate has been on a rollercoaster ride for the past two months, but the tides have finally turned in favor of buyers in the last two weeks. The uptrend may not be a clear victory yet, but buyers have been flexing their muscles and pushing the lows to new heights. On the H4 chart, the moving averages have now transformed into a solid support system, as illustrated below.
EUR/USD Chart H4 – The 100 SMA Is Now Holding the Dips
From the depths of 1.06, the EUR/USD has made a dramatic turnaround and has been on a bullish streak for three consecutive weeks. Last week, it boldly broke through the 1.07 barrier, sparking hopes for a positive trend.
But alas, the currency faced a formidable foe at the 1.0750 level, constantly being pushed back by strong resistance. Today’s release of unemployment data from Spain, Italy, and the Eurozone, along with the French Industrial Production report, proved to be a dampener for the Euro’s rally.
Exciting rumors are swirling as the European Central Bank gears up for its June meeting, with key members advocating for an easing cycle to begin. Whispers of a potential 75 basis points interest rate cut in 2024 have sent shockwaves through the financial world.
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With the Eurozone’s lackluster economic performance and the US economy’s unwavering strength, many are predicting a boost in the value of the Dollar in the near future. This forecast is reinforced by the growing possibility of the ECB taking the plunge and reducing rates before the Federal Reserve.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.