EUR/USD Price Analysis – July 13, 2023

Daily Price Outlook

The upward trend in EUR/USD persists, continuing to mark gains for the day, with the intraday bias favoring an upward trajectory. The current rise from 1.0634 is projected to retest the high of 1.1094.

EUR/USD Price Outlook: Bullish momentum fuelled by July's Fed rate hike limitations

The singular remaining option for a Fed interest rate hike by year's end, owing to underwhelming US CPI data, has enabled a steady bullish momentum for the EUR/USD pair.

Nearing the 1.1150 mark, the currency pair is exhibiting strong upward momentum as the market sentiment is buoyant and the US Dollar Index (DXY) braces for a dip.

With a noticeable decrease in annualized figures due to falling used car prices, both the headline and core inflation in the US for June recorded a modest increase of 0.2%.

The US Dollar Index (DXY) has experienced a sharp plunge to approximately 101.40, and it is expected to continue this downward trajectory.

As a countermeasure to persistent inflation, the European Central Bank (ECB) is anticipated to raise interest rates further. As stated by ECB President Christine Lagarde, additional rate hikes are crucial.

EUR/USD Price Chart – Source: Tradingview

EUR/USD - Techncial analysis

The EUR/USD pair continues to show a strong bullish tendency, steadily moving towards our predicted target at 1.1184. This upward trend is bolstered by a successful breach of the bullish channel's resistance as indicated on the chart, signifying the potential for sustained upward movement in the short and medium term.

Further ascents are anticipated, potentially touching 1.1275.

As a result, we foresee continued upward movement in the upcoming trading sessions, bolstered by the support of the EMA50. It's worth noting that a drop below 1.1075 could interrupt the projected rise and might cause a bearish correction before the bullish trend resumes.

The estimated trading range for today is likely between the support level of 1.1080 and the resistance level of 1.1235.

Overall, today's trend is expected to lean towards the bullish side.