EURUSD Technical Outlook Analysis: A Bullish Recovery with Cautious Optimism

EURUSD Technical Key points:

1. Bullish recovery from 1.0550 support
2. The previous forecast of 1.1150 target was met with 200 pips of movement
3. Strengthening bullish momentum expected towards the 1.1150 resistance
4. 1.1150 is a short-term resistance zone
5. Underlying bearish bias suggests a potential reversal after 1.1150 retest
6. Close observation of market flow and price reaction at 1.1150 is crucial

The EURUSD currency pair has been exhibiting a bullish recovery movement from the support area of 1.0550. Our previous forecast last week targeted a level of 1.1150, and the market has indeed moved around 200 pips in the direction of our prediction. This suggests that the bullish momentum is gaining strength. For this reason, we can expect further upward movement towards the 1.1150 level, which represents a short-term resistance zone.

However, it’s important to note that our main bias remains bearish. This means that once the market retests the 1.1150 area, we may see a bearish reversal. Before making any definitive conclusions, it’s crucial to closely observe the market order flow and the price reaction as the EURUSD approaches the 1.1150 level.

EURUSD Fundamental Outlook: Dovish US Jobs Data and ECB Stimulus Boost the Euro

The fundamental factors also support the current bullish trend in the EURUSD pair. Last week, the US job data on Friday was reported as dovish, which means that the data indicated a slower pace of economic growth or a more accommodative monetary policy from the Federal Reserve. This, in turn, has helped to boost the Euro against the US Dollar.

Additionally, the European Central Bank’s (ECB) ongoing stimulus program has been a key driver in the EURO’s rise. The ECB’s commitment to supporting the European economy through its policy measures has contributed to the increased demand for the EURO, leading to the current bullish movement in the EURUSD pair.

Overall Outlook

Given the combination of technical and fundamental factors, the EURUSD pair is expected to continue its bullish recovery, with the potential to retest the 1.1150 resistance level. However, traders should remain cautious and closely monitor the market’s behavior as the price approaches this key level, as a bearish reversal could still be a possibility based on the overall bearish bias.

 

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