EUR/USD – The Uptrend Is Likely To Continue For The Pair

Bullish View

• Take Profit: 1.1300
• Stop Loss : 1.1200
• Timeline: 1 day

Bearish View

• Sell Stop : 1.1215
• Take Profit: 1.1150
• Stop Loss : 1.1300

Recently, the EUR/USD pair price went up hitting a fresh high of 1.1240, which is the peak price since March, 2022. The pair has gained some momentum prior to the US retail sales data release. This is the next key data release to look forward to for the major pair. The previously released US economic data showed signs of weakness in the economy which ultimately gave a boost to the EUR/USD pair prices resulting in an uptrend. The Core inflation in the US has dropped to 4.85 and CPI also fell to a level of 3% for the month of June.

The falling inflation of the US also suggests that the Fed will likely pause the rate hikes later on and economists are anticipating a narrow rate hike of 0.25% in the upcoming meeting. The US Job market also seems to be tightening, as they have already added 209k jobs as revealed by the latest employment data. As per the Goldman Sachs Analysts, the Fed will be able to contain the inflation before it goes out of control so the chances of a recession or economy slowing down are thin as of now.

On the price charts, the pair price has been displaying a solid bullish trend and it has crossed all the Moving Averages and it also moved above the Ichimoku Cloud. The bullish signs are quite strong with the formation of a bullish flag pattern on the charts. We also saw a flipping of the key resistance level 1.1097, which was apparently the peak price in the month of April. So, overall there is some optimism and most traders are expecting the uptrend to continue for the pair.

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