EURUSD Consolidation Amidst Bullish Momentum: Key TakeawaysThe EUR/USD pair experienced consolidation last week despite maintaining its bullish momentum. The 1.10422 supply/resistance level held strong, leaving traders wondering how long this resistance will persist.
The uptrend remains intact on daily, 4-hour, and 1-hour timeframes, with price rejecting from the 20-day EMA and MACD above the zero line. However, the 4-hour chart suggests a potential retest of the 1.09098 support level due to weak upward momentum shown by the MACD.
The 1-hour timeframe indicates a shift in momentum as the MACD is now below the zero line. This, combined with consolidation on the 4-hour timeframe, implies that price action may move sideways for some time, barring any major news events.
Several factors could impact the EUR/USD chart next week, including monetary policy decisions by the ECB, inflation data, market confidence and sentiment, and overall economic growth. Additionally, the GBP/USD pair has been trading within a range, offering traders potential range-bound opportunities by buying near support and selling near resistance.
A series of economic events and data releases, such as the ECB's monetary policy decisions, ISM Manufacturing and Services PMI, and U.S. employment figures, could cause price volatility in the coming week. Moreover, many speculators believe that the Fed will halt interest rate hikes after the May 3rd decision, which may influence the EUR/USD pair's movement.
In conclusion, traders should keep an eye on key factors, economic events, and data releases that could affect the EUR/USD pair while also considering the current consolidation and potential sideways price action.
