EUR/USD Intends To Keep The Momentum

By Andrey Goilov, analyst at RoboForex

Early in the week, the major currency pair is rising towards 1.0757.
 
Monday’s trading session is going to be calm and quiet – the US has a day off and the economic calendar offers few statistics. However, the week is promising to be very interesting – a lot of numbers and important events from Europe and the US.
 
First of all, it’s the speech to be delivered by ECB Governor Christine Lagarde. If market players hear in her speech any hints at possible monetary policy tightening that she hadn’t said before, the EUR rate might rise.
 
Secondly, the labour market statistics from the US. Possibly, the unemployment rate might have dropped a little bit in May, but the NFP is not expected to improve as much as it did in April.
 
Technical analysis - EUR/USD
 
In the H4 chart, EUR/USD is forming one more ascending wave towards 1.0788 and may later resume trading downwards to reach 1.0533. After that, the instrument may start another growth towards 1.0655 and then form a new descending structure with the target at 1.0333. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving above 0 not fat from the highs and may resume falling to reach 0 and update the lows.
 

 
As we can see in the H1 chart, having rebounded from 1.0641, EUR/USD continues the ascending wave towards 1.0777, at least. Later, the market may start a new decline to break 1.0640 and then continue trading downwards with the target at 1.0535. From the technical point of view, this idea is confirmed by the Stochastic Oscillator: after reaching 80, its signal line is expected to fall to break 50 and then continue its decline towards 20.
 

 
Disclaimer
Any forecasts contained herein are based on the author's particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.