EURUSD trending higher, defense strengthened by approval of Sweden’s NATO membership【July 11, 2023】

Fundamental Analysis

• Turkey Agrees to Sweden’s NATO Membership; Hungary Expected to Follow with Approval
• NATO Front Strengthens, Fundamentals Favorable as Eurozone Defenses Strengthen
• Japanese Inflation Expectations Hit 9-Year High, Approaching BOJ Target, Putting Pressure on Interest Rates
• U.S. Consumer Price Index to be Released on Jan. 12; Dollar Selloff Likely to Continue Today

EURUSD Technical Analysis

The EURUSD is continuing its upward trend. The background of the EURUSD’s rise is dollar selling. The trend is not limited to the EURUSD, but also includes the USDJPY and the GBPUSD in the direction of dollar selling. The focus of attention for the eurodollar is to see if the recent high of USD 1.1012 is exceeded. At the time of writing, it is hovering at USD 1.1007 and is close to a new high.

Day Trade Strategy (Hourly)

Day trading policy is to buy at the push. In the medium to long term, the price will maintain an upward trend, but the RSI is at 71, and there is a possibility of a temporary pullback. Since the 24 moving average is functioning as a support line, we believe the rise will continue as long as the 24 MA is not broken.

Caution is needed near the recent high of USD 1.1012. A break above USD 1.1012 is likely to engulf stop-losses and push the pair higher toward USD 1.110. Near-term upside guidance is around USD 1.1030 – USD 1.1045.

Support and Resistance Lines

The resistance line to be considered in the future is as follows

1.1012 USD – The recent high
1.100 USD – Round number (Support zone)

Today’s Important Economic Indicators

*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.