The EURUSD is stabilising around the week’s highs, trading above the 50% midpoint. Its upward trend began last Friday, supported by the 100-day moving average, which provided a strong foundation for buyers. The pair’s advance continued as it broke above the 200-hour moving average and the 38.2% retracement of the decline from July’s high, reaching above the 50% midpoint at 1.16098.<\/p>\n
On Thursday, EURUSD nearly hit 1.1700, a resistance level, before pulling back to retest the 50% retracement. Buyers maintained their position above this line, keeping the bullish trend intact. While Friday\u2019s high did not surpass Thursday\u2019s peak, the higher low sustained buyer interest, setting up an important test early next week.<\/p>\n
– A decline below the 100-hour moving average (1.16156) and the 50% retracement (1.16098) would shift the trend downward.
\n– On the other hand, staying above these levels and surpassing the 61.8% retracement at 1.16815 could lead to a retest of 1.1700, progressing towards the July highs at 1.1787 and 1.18289 as objectives for bulls.<\/p>\n
We are seeing the EURUSD consolidate above the critical 1.16098 support level. This 50% midpoint has acted as a new floor for buyers, and holding it is key to maintaining the bullish trend that began last week. The immediate challenge is to push past the highs from Thursday, just below the 1.1700 resistance.<\/p>\n
Traders with a bullish view should consider buying call options with strike prices above 1.1700. The trigger for this would be a sustained break above the 61.8% retracement level at 1.16815. If that barrier falls, the path is open toward the July highs near 1.1787.<\/p>\n
This technical strength is reinforced by recent fundamental shifts. The US jobs report for July, released last Friday, showed Non-Farm Payrolls at a disappointing 150,000, which has weakened the dollar. Conversely, the latest Eurozone flash CPI estimate showed core inflation holding firm at 2.9%, suggesting the European Central Bank may not cut rates as soon as expected.<\/p>\n
However, we must watch the 100-hour moving average at 1.16156 very closely. A break below this level and the 1.16098 support would signal that the recent buying pressure has been exhausted. This would be the time to consider buying put options to hedge or speculate on a move lower.<\/p>\n
This policy divergence reminds us of the market action we saw back in late 2023, which also drove a significant rally in the Euro. Historical data from that period showed that once the trend direction was established, the move was often quick and decisive. Being prepared for either a breakout or a breakdown is therefore essential in the coming days.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" EURUSD holds above key technical levels, maintaining bullish momentum with eyes on 1.1700 and July highs.<\/p>\n","protected":false},"author":62,"featured_media":16962,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-28640","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/28640","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=28640"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/28640\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16962"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=28640"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=28640"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=28640"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}