EURUSD plunges, volatility rises as dollar’s strength tone sharply returns【July 21, 2023】
July 21, 2023
- Japan’s CPI expanded to 3.3%, in line with market expectations
- YCC Revision Observations Recede; USDJPY Rises on Impact of BOJ Governor Ueda’s Remarks
- EURUSD falls for the first time in a month; USD strength quickly recovers
EURUSD Technical Analysis
The EURUSD fell sharply for the first time in almost a month. The decline had been ongoing all week, but yesterday’s move was very significant. One of the factors contributing to this is the rapid recovery of the dollar’s strength. The ECB Council meeting is scheduled to take place next week, which could be seen as somewhat of a position adjustment. The pair is approaching the $1.11 support band and it will be interesting to see if it rebounds.
Day Trading Strategy (Hourly)
Our day-trade policy is to buy on short-term push.
Since $1.11 is considered to be a very solid support zone, we would like to buy when it approaches $1.11, keeping in mind the short term.
We also want to consider that the RSI is trending above 30 again.
However, we would be very careful to be contrarian as the dollar is strengthening. Stop is near $1.0975.
Support and Resistance Lines
The resistance line to be considered in the future is as follows
1.129 USD – Uptrend line
1.11 USD – Major support zone
EURUSD Sell: 66% Buy: 34%
Today’s Important Economic Indicators
|Economic Indicators and Events||JST (Japan Standard Time)|
|Consumer Price Index for Japan||8:30|
|UK Retail Sales||15:00|
*Trading advice in this article is not provided by Milton Markets, but by Shu Fujiyasu Jr., a certified technical analyst.