Euro Maintains Upward Momentum Despite Strengthened US Dollar
Main Points:
- The EUR/USD pair sustains its upward trajectory for the fourth consecutive session, despite the strengthened US Dollar following improved US PPI data.
- The H4 timeframe reveals a notable RSI Divergence around the resistance area suggesting a potential pullback before resuming its upward trend.
- The US Dollar Index continues its decline, following dovish remarks from Mary C. Daly, President of the San Francisco Federal Reserve.
- Three rate cuts are considered a reasonable baseline for 2024, as Daly emphasizes the premature nature of considering economic intervention withdrawal.
Takeaway:
The EUR/USD pair maintains bullish momentum amidst subdued USD sentiment and the US Presidents’ Day holiday. Despite apparent strength in the USD following the US PPI data, the dovish sentiments from the Federal Reserve’s San Francisco President hint at a cautious and restrained approach to monetary policy. The decline in the US Dollar Index, coupled with the technical indications of a possible price pullback, underscore the need for traders to keep a close eye on the movement of this pair. Against this backdrop, technical indicators and Fed commentary will serve as crucial guides providing further market insights.
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