🔍 Technical Analysis
Trend: Bullish
Key Levels:
• Support: 1.1360, 1.1290, 1.1180
• Resistance: 1.1485, 1.1560, 1.1630
Indicators:
• RSI: Approaching overbought territory, indicating potential for short-term pullbacks.
• Moving Averages: The price remains above key moving averages, supporting the bullish outlook.
A sustained move above 1.1485 could lead toward targets of 1.1560 and 1.1630. Conversely, a decline below 1.1360 might result in testing lower support levels.
📰 Fundamental Factors
• US Dollar Weakness: The dollar index has declined to 98.58, its lowest since late April, due to concerns over trade policies and fiscal deficits.
• Euro Strength: Despite the European Central Bank's rate cuts, the euro has appreciated over 10% against the dollar in the past four months, challenging traditional monetary policy effects.
• Economic Data:
• Eurozone CPI: Expected to drop to 2.0% from 2.2%, potentially influencing ECB policy decisions.
• US JOLTS Report: Forecasted to show a decrease in job openings to 7.110 million, suggesting a potential softening in the US labor market.
📅 Key Events This Week
• 3 June: Eurozone CPI release.
• 3 June: US JOLTS Job Openings report.
• 5 June: ECB monetary policy meeting.
• 7 June: US Non-Farm Payrolls data.