EURUSD currency trading is slow for the start of the week due to the holidays in Germany.
The pair, however, may not move much until we get a final decision regarding the interest rate policy decisions this Thursday. Inflation in the Euro area hit a record high at 8.1% so there is even more pressure on the ECB to take some actions.
Speculators think that interest rates will be much higher after the summer, so there are more and more buyers trying to send the pair higher.
Technicaly speaking, we see EURUSD turning higher after breaking the channel resistance line last month. With this in mind, it appears that the fifth wave is finished. Recovery is quite strong and clearly in five sub-waves so that’s wave (A) first leg of a higher degree recovery in wave 4, which can see even move up to 1.0940-1.1 area after wave (B) set-back. Support is at 1.0580/90, followed by 1.05 which can be an interesting shoprt-term buying opportunity. Higher stocks are also bearish USD, bullish EUR.
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The author may have a position in the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.