- EUR / USD Outlook turns Bullish until feelings are helped after ceasefire.
- The decline in raw oil prices can provide more support for EU economy.
- Markets are now waiting for the testimony of food presidency before the Congress for further traces of politics.
EUR / USD pair is aimed at impressive return, gaining 1.3% of Monday Monday to trade near Level 1,1600. The price marked the freshly quarterly top. The rally was launched in a risky mood, because American President Trump announced a truce between Iran and Israel after about two weeks of conflict.
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The markets welcomed de-escalation despite the reports of the rocket fired from Iran before Tuesday. The US dollar and crude oil experienced sales. The dollar index fell to level 98.00, while the VTI fell more than 3% to fall to an area of $ 66.00. This decline in oil prices is favorable for the eurozone, net importer of oil, as it can further mitigate inflation pressure.
Adding more to Euro’s bikar momentum, the German IFO business climate report has shown mildly improved in all indices in June. The expectation index increased to 90.7 from the previous 88.9, which shows the sign of economic stability in the eurozone economy.
However, the rally can be exhausted because it is already excessive, starting from the first week of March. UOB analysts predict the price to stay in the known range from 1,145 to 1,1660, warning that strong conditions are able to limit further gain if FED offers a surprise.
All eyes are now on the testimony of the Fed Sheet Survey Jerome Powell before Congress. Recent Comments Official Fed Ah Forgal suggests that cutting rates can come even July, turning the market caution. According to the CME FevEdch tool, the probability of the rate decreases in July is only 20%. Leaves room for repositioning if Powell bends further delivery policy.
EUR / USD Technical Outlook: Consolidation near Highss
EUR / USD 4-hour graph shows consolidation near level 1,1600. Customers can exhaust because RSI shows almost overpaid conditions. The price went well above the keyly moved average of yesterday. The stay above the SMA compounds of about 1,1500 can hold the momentum of untouched swing.
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The couple can go to 1,1632, which is a year high 1,1700 (round number). On the flip side 1.1550 offers current support per night of 1,1500 surfaces. The price can be range here before the department.
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