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Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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EURUSD Bulls extend the recovery & aims next resistance $1.0602

EURUSD has shown a good recovery after retesting its lowest support levels in 2022 at $1.0359 created during the second week of June. The pair had formed a double bottom at this level, coinciding with its lowest level created previously in May 2022 at $1.0348.

The bulls have since then pushed the price higher, attaining a maximum level at $1.0602 before a short retracement, bringing the price lower to the support at $1.0545 last week.

Nevertheless, EURUSD has started the new week on a positive trend, showing bullish solid momentum and readiness to revisit its support at $1.0602. The price is currently at $1.0576 during the Asian session today. And with the dollar index losing strength during this session, it appears more likely that this current target can easily be achieved today.

However, investors are currently awaiting the release of the report on the US durable goods orders and the core durable goods statistics. We have discussed the impact of this data and the other factors influencing the EURUSD pair in the following paragraphs below.

Factors that influence the EUR/USD pair today

  1. German Buba Monthly Report: This report contains relevant articles, speeches, and statistical tables which assist investors in analysing the current and future economic performance of the country's currency, especially from the bank's viewpoint. A hawkish report from this data is perfect for the Euro.
  2. G7 Meeting: The G7 meeting is attended by the finance ministers and central bankers from seven industrialised nations such as France, Germany, Canada, Italy, Japan, the UK, and the US. The G7 meeting is an important economic event in the forex market as the decisions of this body during their meeting exert significant influence on the currency market, especially on EURO, Dollar, and pounds.
  3. US Core Durable Goods Orders: The Core DGO measures the change in the value of new purchase orders placed with manufacturers for durable goods, excluding transportation items. The Core DGO report is a significant indicator of the manufacturers' strength and forecasted productivity. An increase in the digits for this report is very healthy for the US dollar. The forecast for this data is 0.4%, the same as the previous record.
  4. US Durable Goods Orders: This measures the change in the value of new purchase orders placed with manufacturers for durable goods. This data is usually the primary indicator for forecasting if the manufacturers will likely increase their production rate. A higher reading from this data will strengthen the US dollar. This means a decline in EURUSD and vice versa. The forecast for this data is 0.1%, while the previous record was 0.5%.
  5. US Pending Home Sales: This data measures the change in the number of homes under contract to be sold but still awaiting completion and excludes the new construction. This report is usually an indicator of the country's economic health, as more home sales bring about more economic engagements. A higher reading from this data is perfect for the US dollar. The forecast for this data is -3.5%, while the previous record was -3.9%.
  6. ECB President Lagarde Speech: The ECB President will be delivering a welcome speech at the ECB Forum on Central Banking in Portugal today. Her tone of voice will probably help investors predict the committee's direction on the interest rate hike in July.
Last Updated: 27/06/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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