Markets Analysis

EURUSD surges, nears round number of $1.10【June 22, 2023】

June 22, 2023

Markets Analysis

Fundamental Analysis

  • Major U.S. indices continue to fall, selling pressure on AI stocks
  • Fed Chair Jerome Powell reiterated in congressional testimony that the Fed will raise interest rates twice this year; rate cut speculation recedes
  • The yen continued to weaken against the U.S. dollar on expectations that interest rates will remain high
  • U.K. inflation beat market expectations; U.K. policy rate announcement scheduled for today
  • Eurodollar rises, may test the USD 1.10 resistance zone again amid the all-around euro strength

EURUSD Technical Analysis

The EURUSD is trading higher across the board. After Fed Chair Jerome Powell’s congressional testimony, the dollar weakened and the EURUSD broke above its range. It is currently hovering around USD 1.09950, which corresponds to 61.8% of the Fibonacci Expansion.

Analysis of the daily chart confirms that the pair has broken above the clouds on the Ichimoku Chart. The lagging line is above the candlestick and the conversion line is above the base line, thus completing the bullish signal of “three-way positive rotation”. Therefore, the medium- to long-term view can be expected to be up.

Day Trading Strategy (Hourly)

The day-trade policy is to buy on the push side, as the RSI is now around 70 and is expected to fall back. This is a market where we want to pull back enough to buy on the pushback. Since USD 1.0975 is a very large support zone, we expect a rebound here.

Analyzing market sentiment, we see a considerable buildup of selling positions, which could lead to a stronger rally with stop losses rolled in. We think the target price is USD 1.1025, which is a major milestone, and USD 1.1050, which corresponds to 100% of the expansion.

Support and Resistance Lines

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

1.10 USD – Very strong resistance zone
1.0975 USD – Strong support zone
1.0960 USD – Pivot point


Market Sentiment

EURUSD Sell: 87% Buy: 13%

Today’s Important Economic Indicators

Economic Indicators and EventsJST (Japan Standard Time)
U.K. Policy Rate Announcement20:00
New applications for unemployment insurance in the U.S.21:30
U.S. existing home sales23:00

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

Enter your email address

You can receive deals such as Milton Markets campaigns and bonuses just by registering your email address.

Technology vendor

This site is operated by Milton Markets.

Milton Markets is a trading name for Milton Markets LLC.

Milton Markets LLC is registered and regulated by Financial Services Authority in St. Vincent and the Grenadine Islands.

MFSC Managements Limited is a Payment agent of Milton Financial Services.MFSC Managements Limited is located at 30 Tempon Street, Engomi, Nicosia, 2408, Cyprus.

The abovementioned corporations or organizations are officially allowed to use Milton brands and trademarks.

Risk warning: FX and CFD product transactions have a very high risk of losing investment principal. Please read the risk disclosure of Milton Markets and fully understand.

Access to Milton Markets may be restricted to individuals or residents in the following countries (not limited to):

North Korea, Afghanistan, American Samoa, Belarus Burundi, Central African Republic, Congo - Brazzaville, Cuba, Iran, Iraq, Lebanon, Liberia, Libya, Myanmar (Burma), Puerto Rico, Rwanda, Somalia, Sudan, Syria, U.S. Virgin Islands , United States, Venezuela, Yemen, Zimbabwe, Côte D'Ivoire, Mali, Guinea, Eritreaa

Milton Markets does not provide services to citizens in the United States, Canada, EU, Iran, North Korea, St. Vincent and the Grenadine Islands.

© MILTONMARKETS, All Right Reserved.