EUR/USD: Bullish Retracement to the Key Level
Updated
EURUSD Fundamental Analysis:
The U.S. economy is showing robust signs with a GDP growth rate of 2.2% and a low unemployment rate of 3.5%, both of which are bullish indicators for the dollar. Coupled with a high interest rate of 5.5%, the U.S. Dollar is likely to attract foreign capital, providing additional upward momentum. On the other hand, the Eurozone is grappling with a sluggish GDP growth rate of 0.1% and a higher unemployment rate of 6.4%, which are bearish indicators for the Euro. While the Eurozone's balance of trade surplus could offer some support to the Euro, it's unlikely to offset the negative impact of its weaker economic performance. Given these fundamentals, a long position in the U.S. Dollar against the Euro could be a strategic move.
Technical Analysis:
the
EURUSD pair experienced significant bearish momentum last month, largely due to the U.S. Dollar's strength. However, the price found strong support at the 1.05 level. Based on this technical setup, I'm anticipating a short-term retracement to around the 1.07 area before the pair potentially resumes its bearish trend. This retracement level aligns with key Fibonacci levels and historical support-turned-resistance zones, making it a strategic target for a short-term long position. Targets:1.06400, 1.06900
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Note
Possible Bullish Scenario
Trade active
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TP one almost reachedNote
you can have your free risk on this trade or secure the profitsTrade closed: target reached
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