Baxia Markets
July 01, 2024

EURUSD Soars with Bullish Momentum as Key Levels Break

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The EUR/USD pair gapped up at Monday's open, triggering a bullish rally throughout the Asian trading session, with the market rallying 40 pips from the session's low. In terms of price action, the market broke above the key resistance level at the recent swing high, which had formed a double top. This breakout strongly confirms a bullish reversal.EUR/USD Soars with Bullish Momentum as Key Levels Break

Additionally, the EMA 50 and EMA 200 have formed a golden cross on the 1-hour time frame, further confirming the bullish reversal. The market is trading above the value zone, indicating high demand for the Euro. The Ichimoku indicator shows the Kijun Sen, Chikou Span, and Tenkan Sen lines floating above the cloud, suggesting a strong bullish trend.

The RSI has entered the bullish zone and is currently in the overbought territory, which may suggest a potential halt and pullback during the European or New York session. The MACD's signal line is above the zero line, and if the histogram crosses below the signal line, it may provide an early indication of a bullish pullback.

Traders are closely watching the gap up as a key level of support. If the market does not close the gap today, it would strongly indicate a very bullish market.


Key Takeaways

  1. Gap Up and Rally: EUR/USD opens with a gap up and rallies 40 pips from the Asian session low.
  2. Bullish Confirmation: Breaks above recent double top resistance, confirming a bullish reversal.
  3. Technical Indicators: EMA 50 and EMA 200 form a golden cross; Ichimoku lines and RSI support bullish trend.
  4. Watch for Pullbacks: RSI overbought and MACD signals potential for a pullback during European/New York sessions.
  5. Key Support Level: Gap up serves as key support; unclosed gap indicates a strong bullish market.

Key Economic Releases to Watch Today

Time Currency Event Impact Actual Forecast Previous
06:00 AUD Judo Bank Manufacturing PMI Final Medium 47.2 47.5 47.5
06:50 JPY Tankan Large Manufacturers Index High 13 12 11
07:00 EUR ECB Forum on Central Banking Medium      
07:30 JPY Jibun Bank Manufacturing PMI Final Medium 50 50.1 50.4
08:45 CNY Caixin Manufacturing PMI High 51.8 51.2 51.7
12:00 JPY Consumer Confidence High 36.4 36.5 36.2
13:00 GBP Nationwide Housing Prices MoM Medium   0% 0.4%
13:00 GBP Nationwide Housing Prices YoY Medium   1.5% 1.3%
13:30 CHF Retail Sales YoY Medium   2.5% 2.7%
14:15 EUR HCOB Manufacturing PMI Medium   53.5 54
14:45 EUR HCOB Manufacturing PMI Medium   44.5 45.6
14:50 EUR HCOB Manufacturing PMI Final High   45.3 46.4
14:55 EUR HCOB Manufacturing PMI Final High   43.4 45.4
15:00 EUR HCOB Manufacturing PMI Final Medium   45.6 47.3
15:30 GBP BoE Consumer Credit Medium   £1.3B £0.73B
15:30 GBP Mortgage Lending Medium   £1.1B £2.41B
15:30 GBP Mortgage Approvals Medium   61K 61.14K
15:30 GBP S&P Global Manufacturing PMI Final Medium   51.4 51.2
19:00 EUR Inflation Rate YoY Prel High   2.3% 2.4%
19:00 EUR Inflation Rate MoM Prel Medium   0.2% 0.1%
20:45 USD S&P Global Manufacturing PMI Final Medium   51.7 51.3
21:00 USD ISM Manufacturing PMI High   49 48.7
21:00 USD ISM Manufacturing Employment Medium   51 51.1


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