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EUR/USD Price Analysis: Extends Recovery Above 1.1030 Ahead Of Important Eurozone Data
EUR/USD is advancing after a strong rebound from 1.1000 in advance of Eurozone GDP and German HICP. Investors are concerned that an increase in the debt ceiling will negatively impact the long-term rating of the U.S. economy, causing the USD Index to decline. The EUR/USD is exhibiting an ascending triangle pattern, which indicates a reduction in volatility.
During the Asian session, the EUR/USD pair has strengthened its recovery above 1.1030. Prior to the correction in the US Dollar Index (DXY), the major currency pair sensed significant purchasing interest from the psychological support of 1.1000.
Investors are concerned that ratification of the debt-ceiling increase proposal will impact the long-term rating of the U.S. economy, causing the USD Index to decline to near 101.00.
On the Eurozone front, Friday's preliminary Eurozone Gross Domestic Product (GDP) and German Harmonized Index of Consumer Prices (HICP) are of great importance, as they will be the most recent economic indicators before the European Central Bank's (ECB) announcement of its interest rate decision the following week.
On an hourly measure, the EUR/USD is exhibiting an Ascending Triangle chart pattern, which indicates a contraction in volatility. The upward-sloping trendline of the aforementioned chart pattern is drawn from the low of 1.0837 on April 10 while the horizontal resistance is drawn from the high of 1.0760 on April 14.
At 1.1030, the 20-period Exponential Moving Average (EMA) is superimposed on the asset, indicating a sideways trend.
In addition, the Relative Strength Index (RSI) (14) oscillates between 40.00 and 60.00. After the publication of Eurozone economic data, the shared currency pair is anticipated to exhibit a powerful move.
After decisively surpassing the round-level resistance of 1.1100, the major currency pair will capture additional gains. A similar event would propel the asset to a new 13-month high at 11.85, which is the high from 31 March 2022 followed by the high from 28 February 2022 at 1.1246.
In contrast, a decline below the April 12 low of 1.0915 would drive the asset toward the April 10 low of 1.0837 and the April 03 low of 1.0758.
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