Euro ready to strengthen further against the dollar

Previous:

My expectations for yesterday rang true. The euro dollar consolidated in a 1.1070-1.1105 range and then headed upwards. The trend line was broken at 1.1105. The road to 1.1215 is now open.

Strong US labour market data is enough to increase the interest rate in September. A correction has started on the dollar.

Market expectations:

The euro is up 35 points – to 1.1152 – in Asia. I don’t see anything which could hinder the euro/dollar’s growth; the news on Wednesday isn’t anything attention grabbing. We could see a rise for the third session in a row. I forecast a rebound to 1.1140/30 with subsequent growth to 1.1180.

Day’s News (EET):

  • 17:00, US non-farm vacancies in June;
  • 17:30, US oil reserve changes for first week of August;
  • 21:00, US July federal budget balance.

Technical Analysis:

Intraday forecast: minimum: 1.1140, maximum: 1.1180, close: 1.1165.

Euro/dollar rate on the hourly. Source: TradingView

The bulls managed to win back all of the losses they incurred on Friday after the strong labour market data. I reckon that there will be another rise up to 1.1200. Today my euro target is 1.1180, along the 112 Gann degree. Now the bulls really need to stand firm in the 1.1130-1.1140 zone.

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