EUR/USD Price Analysis – July 11, 2023

Daily Price Outlook

During early trading in Asia on Tuesday, the EUR/USD bulls achieved a three-week high near 1.1015, extending their four-day winning streak. This move allowed them to surpass the key resistance line from the previous day and propel the Euro buyers towards another significant upward milestone.

The EUR/USD pair is currently finding support from the breakout of a two-month-old descending resistance line, which now acts as immediate support around 1.0980. The bullish signals from the MACD and the non-overbought RSI (14) line further support the optimistic sentiment.

However, the previous monthly high around 1.1015 provides encouragement to the EUR/USD bulls, particularly as traders await US inflation data and second-tier Eurozone sentiment figures. The bears would face challenges before gaining control, including an upward-sloping support line from March, which is currently near 1.0730.

The EUR/USD bulls approached the 1.1000 hurdle, marking the highest levels in over two weeks, during Tuesday's early Asian session. Despite hawkish comments from Federal Reserve (Fed) officials, the Euro-dollar pair benefited from the overall weakness in the US Dollar and a risk-taking sentiment, supported by a positive market outlook.

However, despite the recent hawkish statements, Fed officials have been unable to influence US inflation expectations, especially following the disappointing US jobs report released on Friday. While US Treasury bond yields declined, Wall Street closed on a positive note.

Nevertheless, the benchmark US 10-year Treasury bond yields experienced their first daily loss in July, while the two-year yields declined for the second consecutive day, reaching levels of approximately 4.00% and 4.86%, respectively.

Looking ahead, DXY traders will monitor risk factors before turning their attention to Wednesday's US inflation data for further guidance.

EUR/USD Price Chart – Source: Tradingview

EUR/USD - Technical analysis

The EUR/USD pair displayed strong upward momentum yesterday, successfully reaching the 1.1000 level. Today, the pair continues with a positive tone, aiming to surpass this level and confirm the continuation of the prevailing bullish trend. The next significant target is set at 1.1075.

The bullish trend remains intact and well-defined within a bullish channel visible on the chart. The EMA50 provides additional support, further reinforcing the upward movement. Holding above 1.0940 is crucial to sustain the rise, and surpassing the target level would extend the bullish wave towards the 1.1184 area.

The expected trading range for today is between the support level at 1.0960 and the resistance level at 1.1105.

Overall, the outlook for today indicates a bullish trend in the EUR/USD pair.