Home > Dynamic > EUR/USD heads higher...

EUR/USD heads higher ahead of major events of the week

2024-05-15

1100

During the U.S. trading session on Wednesday (May 15), the euro/dollar rose during the session as the market awaited news on some recent key events.

The German economic confidence index rose for the 10th consecutive month in May. The much-watched ZEW Economic Sentiment Index is 47.1. This was higher than expectations for 46 and April's 42.9. ZEW said signs of recovery in the euro zone and key export market China were behind the euro's gains.

Federal Reserve Chairman Jerome Powell said in his speech that he is less confident than before that inflation will come down. However, he emphasized that he did not think that the next step might be to raise interest rates, and was more likely to maintain the policy interest rate at the current level. The U.S. dollar index fluctuated slightly during his speech.

Important euro zone gross domestic product (gdp) data will be released on Wednesday, followed by possibly the star data of the week - the US consumer price index (cpi).

The euro has strengthened strongly against its U.S. dollar rival since its long-term slide to lows in mid-April. Over the past few weeks, the euro zone economy has returned steadily and global risk appetite has generally improved, which has supported the euro.

However, the European Central Bank (ECB) is expected to start cutting interest rates before the Federal Reserve (Fed), and a rate cut next month is still possible. If these expectations are met, it's hard to see EUR/USD moving forward.

Recent EUR/USD trading is still dominated by the upward trend since the April low. Its lower limit did not appear until 1.07122, well below market levels.

However, the 50-day and 100-day moving averages currently sit above this level and appear to be blocking the path to a retest of the upper limit, with psychological resistance at 1.08 also prompting sellers to exit.

The euro has also re-entered the wide trading range that dominated trading between mid-January and April 12. The price currently offers support at the February 15 low of 1.06591.

From a longer-term perspective, the pair is currently between the downtrend line from mid-December and the uptrend line from early October. The former appears to be at greater risk of a short-term test, but the overall pattern suggests that overall volatility is declining.

From a fundamental perspective, a stronger uptrend is unlikely in the short term, so a break below the downtrend line should probably be viewed with caution.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

CM Trade

As a world leading financial trading platform, CMtrade Provides comprehensive one-stop trading services and opportunities for traders.

[Products]

The platform provides over 32 kinds of popular financial products such as forex, precious metals, crude oil, indices, cryptocurrencies and more.

[System]

2 top trading systems CM Trade MT4 / CM Trade APP, powerful and easy to operate

[Service]

Comprehensive market news, professional market analysis, 7*24 hours online customer service

[Advantage]

Low cost, high leverage, flexible one-stop all day two-way trading.

[Authority]

Licensed and strictly regulated by authorities. Traders deposits are independently kept by the bank. Fast deposit and withdrawal. Fair, efficient and transparent trading environment.

Free Access
Daily Trading Strategy Download Now

CM Trade Mobile Application

Economics Calendar

EUR/USD heads higher ahead of major events of the week

Access to global trading markets anytime and anywhere