August 16, 2021

Will EUR/USD Continue Last Week's Surge?

 The depreciation of the US dollar in last weekend’s trading has opened up room for a price spike on the EUR/USD currency pair chart.

In addition to the profit -taking activity factor that occurs on weekends, data from the US consumer confidence survey published in the New York session last Friday saw the reading fall to a 10 -year low.

On the EUR/USD chart last week, the price has been moving slowly for minutes above the support level of the Moving Average 50 (MA50) on the 1 -hour time frame for an early signal for a bullish movement of the price.

Following the weak US consumer confidence data has pushed the price to the 1800.00 focus level again before slowing down and closing last week's trade around that level.

Chinese economic data published with a weak reading at the market opening earlier this week is likely to be slightly supportive of the safe-haven currency of the US dollar with an assessment of risky sentiment by investors.

A decline may be seen, however if the price fails to fall lower past the 1.17500 zone, the upside will be expected again to test the 1800.00 resistance.

A successful continued rise at the beginning of the week beyond the 1800.00 level will give a clearer indication for a bullish trend of the price.

The resistance zone at 1.19000 will next return to the bullish target.

On the other hand if the US dollar manages to strengthen again this week and press the price down again, the support zone at 1.17000 will target the price to test.

Still an important support for the price, if the price falls lower below the zone, the price will record the latest lows of the year.