This is why EUR/USD is expected to rise higher - Kakiforex.com - Financial Market Media No. 1 in the World This is why EUR/USD is expected to rise higher This is why EUR/USD is expected to rise higher
InstaForex

June 2, 2021

This is why EUR/USD is expected to rise higher

 The price chart movement for the EUR/USD currency pair featured a bullish pattern at the market opening earlier this week.


Market analysts expect the price trend to make even higher gains this week surpassing the highs reached last week.


These are some of the factors that are seen to drive up the price on the EUR/USD chart.


First, weak US dollar movement sentiment continued earlier this week and investors were also wary ahead of the US NFP jobs data report on Friday.


Next, the Euro currency is expected to exhibit an outstanding performance this week after Germany’s major DAX index has recorded its latest highs.


Investors are also awaiting action by European central banks in setting their monetary policy changes after European zone inflation data published yesterday recorded readings rising above targets that are likely to prompt the central bank to tighten policy.




It can be observed that the price on the EUR/USD chart increased until yesterday’s New York session tested the resistance level at 1.22500.


However, after reaching that high, the price declined again following the strengthening of the US dollar, which was supported by the issuance of higher -than -expected US manufacturing ISM survey data.



Continuing trading on the Asian session on Wednesday morning, the price showed a supported rebound at the support level of the Moving Average 50 (MA50) on the 1 -hour time frame of the price movement for a signal to resume the rise earlier in the week.


The 1.22500 resistance zone is expected to be overcome before a higher rise leads to the 1.23000 focus level.


It is likely that investors will see EUR/USD hit its latest 5 -month high this week.


Still, be wary if market sentiment changes and prices start making declines again.


The decline will return to the RBS zone (resistance become support) below the 1.21800 level that was tested last week.


If the zone fails to support the rebound, investors will see the price decline lower towards the next RBS zone at 1.20900-1.20600.