GOLD Price Analysis – July 18, 2023
The EUR/USD continues to advance today, maintaining its upward bias. The ongoing rise from 1.0634 aims to retest the high at 1.1094. A decisive breakthrough at that level would signal a resumption of the larger upward trend from the Fibonacci level of 0.9534 to 1.1273.
During Tuesday's Asian session, for the third consecutive day, the EUR/USD bulls traded near their highest levels since February 2022. The pair is supported by the European Central Bank's (ECB) confident stance and the weakening of the US Dollar.
However, cautious sentiment prevails ahead of the crucial US Retail Sales report for June and amidst a mixed market environment, which enables buyers of the major currency pair.
Botjan Vasle, an ECB official, expressed support for tightening policy at the next ECB meeting, emphasizing stable and robust core inflation. Meanwhile, Wall Street recorded modest gains while US Treasury bond yields remained under pressure.
The upcoming US Retail Sales report for June, expected to show an increase to 0.5% from 0.3% in May, will play a critical role in breaking the current upward block. Additionally, the ECB meetings and the anticipated decline in US industrial production for June, from 0.2% to 0.1%, will also be significant factors to monitor.
EUR/USD - Trade Idea
The EUR/USD pair kicks off the day with positive momentum, signaling renewed efforts to break through the resistance of the current sideways range visible on the chart. This development reinforces expectations of a continued bullish trend in the upcoming sessions, with the next target set at 1.1275.
Sustaining levels above 1.1200 holds significant importance for the continuation of the suggested bullish wave. As the rise is anticipated to persist, additional positive targets are within reach, with the potential to surpass the aforementioned level and target 1.1418.
Traders should monitor the expected trading range for today, which is projected to span between the support level of 1.1170 and the resistance level of 1.1330.
In summary, the EUR/USD pair shows promising signs for a bullish breakout as it sets its sights on a key resistance level.
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