Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
EUR/USD is about to retest 1.1600
2020-07-24 • Updated
The pair slightly contracted after reaching the highest level since 2018. What’s next?
The euro has shown the great performance during 2020 so far. It seems it has changed the 2-year downward long-term trend. If we look at the weekly chart below, we will notice it.
The Euro gained on the current risk-on sentiment and the weak US dollar. Also, EU members agreed on the 750-billion-euros recovery fund to support economies in Europe. This fund includes 360 billion euros in loans and 390 billion euros in grants that don’t need to be repaid. Moreover, today the German consumer climate gave an additional impetus to the further EUR’s rally. It came out 0.8%, that was twice better than analysts expected. Some analysts claimed that the euro is overbought, but it keeps rallying no matter what.
If we look at the weekly EUR/USD chart, we’ll see that the pair is really close to break the intersection of the 12-year trendline and the 50.0% Fibonacci retracement level at 1.1600. If it crosses it, it will surge to the 61.8% Fibo level at 1.1820.
Now let’s look at the 4-hour chart. EUR/USD reached the key psychological mark at 1.1600, but then slightly contracted. If it breaks it through again, the price may jump to the high of September 9, 2018 at 1.1625. On the flip slide, the move below the support at 1.1570 will form the bearish double-top pattern and push EUR/USD even lower to 1.1525. Follow the US unemployment claims report at 15:30 MT time. It will add some fresh volatility to the pair!
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
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