EURUSD Breakout Opportunities
The initial breakout above the bear channel top saw price running into selling pressure ahead of the 1.2176 level, taking the pair pack down into the channel. However, since finding support again, price has subsequently broken back to the topside, surpassing those initial highs. While EURUSD is currently held up at a test of the 1.2176 level, the market looks primed for a breakout towards the 1.2343 level next, offering long opportunities above the 1.2176 level.
Key Data to Focus on This Week
USD remains weak following a highly disappointing set of labour market data for April, released on Friday. This week, traders will be focusing on US CPI (Weds) and Retail Sales (Fri). Both readings have the potential to see the current USD rout deepen if forecasts are missed, helping lead EURUSD higher. On the other hand, if data surprised to the topside, EURUSD is likely to remain below the 1.2176 level for now. Away from that, focus will be on the continued performance of vaccinations within the eurozone, Numbers have been picking up steadily over the last month, helping lift sentiment. If this theme continues, EUR should continue to benefit heading into the ECB’s June meeting next month
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Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.