Ahead of talks on the US debt ceiling, the EUR/USD is trading above 1.0800.
FUNDAMENTAL OVERVIEW
Over 1.0800, the EUR/USD is trading sideways during the European session. In a risk-off market environment, the US Dollar is under pressure as traders exercise caution ahead of the next round of talks on raising the US debt ceiling.
Following Friday’s recovery, the EUR/USD pair entered a consolidation period early on Monday near 1.0800. The pair may move higher in the near term if it affirms that level as support. Investor attention is still centered on US debt ceiling discussions and central bank officials’ remarks.
The European Central Bank (ECB) President Christine Lagarde stated, “I think we covered a large chunk of the journey towards taming inflation and bringing it back to our target,” in an interview with Dutch media over the weekend. However, she emphasized that based on the information they currently have, they are not considering a break in the cycle of tightening.
However, FOMC Chairman Jerome Powell struck a more conciliatory tone on Friday, claiming that the risks of tightening policy too much versus too little were becoming “more balanced.”
The US market index futures remain unchanged for the day, while the Euro Stoxx 50 Index trades slightly down in the European morning. The US Dollar may struggle to maintain its position if risk flows take control of the market’s reaction to fresh confidence about a deal to raise the debt ceiling, and vice versa. Following a productive phone call on Sunday, US President Joe Biden and House Republican Speaker Kevin McCarthy will meet once more on Monday.
EUR/USD TECHNICAL ANALYSIS DAILY CHART:
Technical Overview
EUR/USD is trading in up channel.
EUR/USD is currently trading below 20&50 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
EUR/USD resistance is at 1.08255 & its immediate support level is 1.07750
HOW TO TRADE EUR/USD
The EUR/USD was moving downward, but it is currently attempting to turn around and move upward. Price is currently trading in a zone of resistance; if this zone is broken, then we can expect a considerable upside.
