With each Eurozone CPI and U.S. NFP stories scheduled for launch, you’ll be able to guess that I’m EUR/USD this week!

The pair is buying and selling simply above the 1.0700 psychological deal with, which isn’t stunning since we simply noticed a doji and the inflection level traces up with a development line assist that EUR bears have been respecting since December final yr.

On this case, the development line (or ascending channel) assist can be across the 61.8% Fibonacci retracement of March’s upswing.

The cherry on prime of this candy bullish play is a bullish divergence on the day by day time-frame.

EUR/USD Each day Foreign exchange Chart Chart by TV

Can the euro nonetheless prolong its features towards the U.S. greenback?

Now that U.S. lawmakers have penciled in a debt ceiling deal, the markets’ focus might flip again to guessing the Fed and ECB’s subsequent plans.

In truth, the Eurozone CPI and U.S. NFP stories due on June 1 and a pair of respectively would possibly give stable clues on which central financial institution must tighten additional within the subsequent few months.

I’m not discounting extra USD power this week however, till we see contemporary catalysts, I’m betting on the U.S. greenback dropping a few of its features from the earlier weeks.

EUR/USD, which is sitting on a development line assist, might bounce to the 1.0800 deal with close to the 100 SMA and 50% Fib.

The pair might even hit 1.0900 or 1.1000 if we see sufficient momentum!

Stops under the development line make sense for now however scaling in or leaping within the uptrend is unquestionably on the buying and selling plan as quickly as I see a shopping for momentum.

What do you assume? Will EUR discover sustained assist towards USD?