EURUSD: Bulls are overwhelming

Fundamental analysis:

As the interest rate gap between the policy interest rates of the United States and the euro area narrows in the coming quarters, the euro will further rise against the dollar. Dieter Wermuth, an economist and partner of the company, said that the narrowing of the interest margin between the United States and the euro area would reduce the attractiveness of the euro as a financing currency in arbitrage transactions, which means investors borrow low yield currencies to invest in high-yield currencies. As a result, he said, the euro should recover after the devaluation this year. This will have a positive impact on foreign trade prices and reduce inflation in Europe in general.

EURUSD daily chart

Technical analysis:

The daily chart shows that the short-term exchange rate continues to rise, the MACD crosses under the 0 axis and the volume can be slightly increased on the 0 axis, and the RSI continues to rise. It is expected that the short-term exchange rate will further rise.  

Empty turning point: 0.9950

Pressing position: 1.0150 1.0400

Support position: 0.9750 0.9550

Trading strategy: bullish above 0.9950, target 1.0150, 1.0400

Alternative strategy: bearish below 0.9950, target 0.9750, 0.9550