The euro gained against the US dollar in the European session on Thursday, with investors positioning themselves for the US second quarter GDP data release. EURUSD was up by 0.1 percent at 09.20 UTC, momentarily trading near nine-session lows before returning to the upside.
The currency pair seems to be blowing hot and cold as investors find themselves with a mixture of fundamentals that could create momentum towards either direction. However, the stalemate could be broken in under 48 hours as the US GDP and PCE data come out on Thursday and Friday.
On the daily chart, the EURUSD pair is on a neutral momentum, with the RSI at 51 and the price intersecting with the middle Bollinger Band.
On the other hand, the 4-hour chart has a bearish-leaning RSI, with the reading at 40. Furthermore, the price is below the middle line on the Bollinger Bands indicator.
The two scenarios are likely to keep the pair in range for the better part of the day as investors hold on for the infusion of fresh volatility from macroeconomic news. The market will likely ignore Durable Goods Orders and Initial Jobless Claims figures and instead focus on the GDP reading.
The momentum on the EURUSD calls for further upside above 1.0850 pivot mark. With the buyers in control, the first resistance will likely come at 1.0860. A break above that mark will strengthen the upside momentum to potentially break the resistance and move the pair higher to test 1.0868.
Alternatively, a move below 1.0850 will favour the sellers to take control, and the downside will likely find the first support at 1.0840. If the sellers extend their control, they could break below that mark, invalidate the upside analysis and potentially send the pair lower to test the second support at 1.0831.
This post was last modified on Jul 25, 2024, 10:57 BST 10:57